Monetary and Fiscal Policy

Who controls Monetary Policy?

• President and Congress

• Federal Reserve

Who controls Fiscal Policy?

• President and Congress

• Federal Reserve

What are the actions of the Government during a recession?

• Decrease target range for

  the federal funds rate

• Lower taxes, increase government spending

What are the actions of the Federal Reserve during a recession?

• Lower taxes, Increase government spending

• Decrease target range for

  the federal funds rate

What are the results of Fiscal Policy?

• Decrease Interest Rates

• Decrease Consumer spending

• Decreases business investments

• Increases Consumer spending

What are the results of Monetary Policy?

(Select all that apply)

• Decrease business investments

• Decrease Consumer spending

• Decrease Interest Rates

• Increase Consumer Spending

What are the main goals of Fiscal and Monetary Policy?

• Stable Prices

• Low Inflation

• Control money supply

• Low employment

Who are the Board of Governors nominated by?

• Governors

• The President

• Congressmen

• President, Governors, or Congressmen

What are the Fiscal Actions during Inflation?

• Increase Taxes, Lower Government Spending

• Decrease Taxes, Increase Government Spending

• Increase target range

  for the federal funds rate

• Decrease Consumer Spending

What is the Monetary Policy Actions during Inflation?

• Increase Consumer Spending

• Increase target range

  for the federal funds rate

• Increase Taxes, Lower Government Spending

• Decrease Tax, Increase Government Spending