Unit 4: Macro Policy

If taxes go down, spending will go ________.

• Down

• Up

If interest rates go up, spending will go ____________.

• Down

• Up

The Federal Reserve/FOMC influence ________ while the government influences ________.

• Taxes and Government Spending; Interest Rates & the Money Supply

• Interest Rates & the Money Supply; Taxes and Government Spending

What is the use of government spending and taxation to influence the economy?

• Expansion Policy

• Fiscal Policy

• Contraction Policy

• Monetary Policy

The Federal Reserve System does all of the following EXCEPT        

            

• implementing monetary policy

• collecting taxes

• distributing currency

• regulating and supervising banks

Contractionary Monetary Policy causes interest rates to ______ and aims to _______ the economy.

• Decrease; speed up

• Increase; slow down

• Decrease; slow down

• Increase; speed up

The tools of Fiscal Policy are:

• Taxes & Government Spending

• Interest Rates

• GDP & Government Spending

• CPI & Unemployment rates

The tools of Monetary Policy are:

• Taxes & Government Spending

• Interest Rates

• GDP & Government Spending

• CPI &GDP

Monetary Policy aims to manipulate the _____________.

• Unemployment

• Money Supply

• Government Spending

• Taxes

Who conducts fiscal policy?

            

•   The Federal Reserve

           

•   The Government

               

       

• Public Service Commission

• Firms/Businesses