CS 20 Fiscal Policy

Fiscal Policy is controlled by...

• The Government

• The Federal Reserve System

• The states

• The Department of Commerce

The two "tools" of Fiscal Policy are:

• the power to tax

• the power to spend

• the power to borrow money

• the power to print money

If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government should MOST likely follow is 

• decreasing taxes.
• decreasing spending.
• decreasing the money supply.
• decreasing the reserve requirement.

If an economy experiences a dramatic rise in prices, which fiscal policy action could be taken?

• Selling securities on the open market

• Raising interest rates

• Reducing government spending

• Raising reserve requirements

The Federal government is concerned that economic growth is too high, that it is unsustainable, and that inflation is resulting. Which of the following fiscal policies  might be enacted to reduce inflation?

• Increasing taxation
• Open market sales
• decreasing taxation
• Increasing government spending

What makes up the largest area of government spending?

• Food Stamps

• Medicare

• Social Security

• Interest payments

The federal government's overall approach to spending and taxes is called

• Physical Policy

• Fiscal Policy

• вежба

• Monetary Policy

Which is worse?

• Depression

• Recession