Fiscal Policy/Monetary Policy

The federal government's overall approach to spending and taxes is called

• The Federal Open Market Committee

• Fiscal Policy

• The Federal Reserve

• Monetary Policy

Who is responsible for making fiscal policy decisions? 

• The President and Congress

• The Federal Reserve System

• The National Council of Economic Advisors

• The Federal Open Market Committee

The headline below indicates which type of policy:

"Fed unleashes another big rate hike in bid to curb inflation"

• Fiscal Policy

• Monetary Policy

Monetary policy decisions are made by:

• Congress

• Senate

• The Fed

• President

In order to help the economy grow, the FED may____________the reserve requirement, allowing banks to loan more people money so that they spend more

• End

• Ignore

• Raise

• lower

In order to slow the economy, the FED may____________ the reserve requirements and there will be less money to loan out to people.

• decrease

• tax more

• increase

• spend more

The amount that all banks have to keep in the reserve and they can't loan out to people

• monetary lending

• fiscal spending

• lending policy

• reserve requirement

The interest rate the FED charges banks to borrow money will be lowered to help the economy grow and raised to slow the economy

• reserve requirement

• discount rate

• bank rate

• monetary rate

If the Federal Reserve System wanted to stimulate the U.S. economy and reduce unemployment, it would

• cause interest rates to decrease because low interest rates encourage business growth and expansion

• cause interest rates to rise because high interest rates encourage business growth and expansion

• increase the discount rate it charges banks, which would increase the money supply

• increase consumer spending by reducing the money supply

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

• taxing

• spending

• All of these options are tools of fiscal policy.

• interest rates