Fall 24 Unit 6 Test Review

The US Govt. uses Expansionary Fiscal Policy (Increasing Govt Spending, Lowering Taxes). What type of budget will they have afterwards?

• Surplus

• Deficit

• Contractionary

• Balanced

The two "tools" of Fiscal Policy are:

• axes and bending

• faxes and sending

• taxes and spending

• waxes and winding

Which is an example of expansionary fiscal policy?

• The Federal reserve lowers the discount rate

• The government raises taxes on all citizens by 5%

• The government increases spending by building more infrastructure

• The federal reserve increases the reserve requirement

When would Congress most likely use contractionary fiscal policy?

• During periods of high unemployment

• During periods of high inflation

• During periods of low economic production

• During periods of peace

Contractionary fiscal policy are law aimed at reducing inflation. How might Congress use contractionary fiscal policy?

• Decrease government spending and increase taxes

• Decrease taxes

• Send stimulus checks to every person in the economy

• Increase government spending

An appropriate fiscal policy to combat a recession would be to increase which of the following?

• Interest rates

• The money supply

• Taxes

• Government spending

Fiscal policy is

• Keynesian

• Classical

When would Congress want to use expansionary fiscal policy?

• During periods of high inflation

• When the economy hits the peak of the business cycle

• During periods of high unemployment

• During an election

Which is an example of contractionary fiscal policy?

• The government increasing taxes on all goods and services by 5%

• The president issues an executive order

• The federal reserve purchases bonds

• Government spending increasing

The US Govt. uses Contractionary Fiscal Policy (Decreasing Govt Spending, Increasing Taxes). What type of budget will they have afterwards?

• Surplus

• Deficit

• Contractionary

• Balanced