Fiscal Policy Review

Fiscal Policy is controlled by...

• The Government

• The Federal Reserve System

• The states

• The Department of Commerce

The two "tools" of Fiscal Policy are:

(choose 2 answers)

• 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

What makes up the largest area of government spending?

• Food Stamps

• Medicare

• Social Security

• Interest payments

An example of a contractionary fiscal policy would be if:

• taxes were cut
• the government bailed out GM 
• the Fed decrease the fed funds rate
• taxes were increased

How does the Government Stabilize the Economy. Choose 2.

• Fiscal Policy

• Taxes

• Monetary Policy

• Banking Policy

Actions by Congress to stabilize the economy.

• Fiscal Policy

• Monetary Policy

• Taxing Policy

• Inflation Policy

What is considered the Economic Gas Pedal?

• Contractionary Fiscal Policy

• Expansionary Fiscal Policy

• Deficit Spending

• Deficit Policy

when annual government spending and transfer payments are greater than tax revenue.

• Budget Deficit

• Budget Surplus

• National Debt

• Global Debt