Econ - Unit 5 Review - Policy, Trade, Global Economy

Who controls fiscal policy?

• Federal Government

• Federal Reserve

• IRS

• World Trade Organization

Who controls monetary policy?

• Federal Government

• Federal Reserve

• IRS

• World Trade Organization

The goal of monetary policy is to

• sell bonds

• reduce unemployment

• 1. prevent inflationary and recessionary economic periods

• increase tariffs on foreign countries

Which of the following is NOT a tool of fiscal policy?

• Taxing

• Spending

• Interest Rates

• All of the options are tools of fiscal policy

Which of the following statements is true?

• Contractionary monetary policy would increase government revenue & slow down the economy.

• Contractionary fiscal policy would decrease the reserve requirement & slow down the economy.

• Contractionary fiscal policy would lead to an increase in the national debt.

• Contractionary monetary never works

What body of the Federal Reserve oversees the purchase and sale of government securities/bonds?

• Federal Open Market Committee

• Advisory Council

• Board of Governors

• Federal Reserve Bank of Dallas

An additional tax placed on imported goods.

• Excise tax

• Tariff

• Quota

• Inflation

A tax that impacts the wealthy more than the poor.

• Progressive

• Regressive

• Proportional

A "flat tax" - taxes everyone equally

• Progressive

• Regressive

• Proportional

Taxes that are charged on consumption items such as gasoline, tobacco, hotel rooms, and airline tickets

• Sales

• Excise

• Corporate

• Property