Macro Pop Quiz

Who controls fiscal policy?

• The Federal Reserve

• The Federal Government

• The FBI

• Federal Income Tax

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

Taxing & spending to help the economy grow is referred to as

• expansionary policy
• monetary policy
• contractionary policy
• budget deficit

Taxing & spending to slow the economy is referred to as 

• budget surplus 
• monetary policy
• contractionary policy
• budget deficit

"The Fed refers to the Federal Reserve System, the Central Bank of the United States. The FOMC is the Federal Open Market Committee, the group responsible for implementing monetary policy."

• Fiscal policy

• Monetary policy

"In February, lawmakers set themselves up to reach a more permanent spending agreement by the end of March. Congress agreed to increases to domestic and defense spending over the next two years, raising funding for domestic programs by $128 billion and hiking defense budgets by $160 billion. But they didn’t actually decide where the money would go."

• Fiscal policy

• Monetary policy

"The U.S. Federal Reserve is almost certain to hike interest rates Wednesday to the highest level in a decade: 1.5 to 1.75 percent. "

• Fiscal policy

• Monetary policy

Monetary policy decisions are decided by:

• Congress

• Senate

• The Fed

• President

This type of inflation occurs when an increase in the in production costs are passed on to the consumer.

• Supply Inflation

• Cost Push Inflation

• Imported Inflation

• Demand Pull Inflation

This type of inflation occurs when the demand for products is greater that the supply of products.

• Cost push inflation

• Demand pull inflation

• Divisional inflation

• Structural inflation