Macroeconomics Test

If the government increases spending or lowers taxes, it is implementing a(n) ________________ _____________ policy

• contractionary fiscal

• expansionary fiscal

• contractionary monetary

• expansionary monetary

If the government decreases spending or raises taxes, it is implementing a(n) ________________ _____________ policy

• contractionary fiscal

• expansionary fiscal

• contractionary monetary

• expansionary monetary

If the Fed decreases the money supply, it is implementing a(n) ____________ ________________ policy

• expansionary monetary

• contractionary monetary

• expansionary fiscal

• contractionary fiscal

If the Fed increases the money supply, it is implementing a(n) ____________ ________________ policy

• expansionary monetary

• contractionary monetary

• expansionary fiscal

• contractionary fiscal

Which is NOT an effect of Expansionary Fiscal Policy

• Encourage consumer spending and investment

• Increase Real GDP

• Increase Price Level

• Decrease Employment

Which is an effect of Contractionary Fiscal Policy

• Encourage consumer spending and investment

• Increase Real GDP

• Increase Price Level

• Decrease Employment

Which famous economist came up with fiscal policy theory?

• Adam Smith

• Karl Marx

• John Maynard Keynes

• Milton Friedman

Which are the three types of money?

• Commodity

• Representative

• Fiat

• Gold

What is the dual mandate of the Fed

• Monitoring Price Levels

• Lowering Gross Domestic Product

• Maintaining Employment

• Encouraging Consumer Spending

How many district banks are there in the Federal Reserve System?

• 6

• 12

• 18

• 24