Fiscal Policy 2
Quiz
•
Social Studies
•
11th Grade
•
Practice Problem
•
Hard
Maya Kharishma
Used 10+ times
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10 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Government spending on infrastructure and long-term projects, such as building roads and bridges, is an example of:
Current spending
Capital spending
Income redistribution
Public goods provision
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is least likeley to rise as a result of the use expansionary fiscal policy?
aggregate demand
budget surplus
nominal income
inflation
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A government announces its intention to reduce the level of transfer payments in the economy. Which statement made by the government is consistent with this intention?
There need to be more incentives for unemployed workers to seek jobs
State pensions need to be increased
The level of income tax needs to be raised
The level of government expenditure needs to be increased
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does an increase in the national debt affect future government spending and fiscal policy choices?
It reduces the need for future taxation.
It lowers interest payments, freeing up funds for other purposes.
It may lead to higher interest payments, crowding out other spending.
It has no impact on future fiscal policy decisions.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
During a period of high inflation, which fiscal policy action is typically recommended to address the issue?
Decreasing government spending
Increasing government subsidies
Implementing expansionary fiscal policy
Raising interest rates
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is least likely to rise as a result of the use of expansionary fiscal policy?
aggregate demand
nominal GDP
budget surplus
inflation
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which action is classified as a fiscal policy measure?
fixing a currency to another country’s currency
managing changes in the level of government debt
providing guidance to industry and the public
reducing liquidity in the banking system
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