Exploring Monetary and Fiscal Policy Concepts

Who is responsible for implementing fiscal policy in the United States?

• The President

• State Governments

• The Federal Reserve

• The U.S Congress

What is the primary role of the Federal Reserve?

• Creating laws

• Setting educational standards

• Monetary policy

• Healthcare regulation

Where do all revenue bills start in the U.S. legislative process?

• The President's office

• The House of Representatives

• The Senate

• The Supreme Court

What was the U.S. national debt approximately in the year 2013?

• $20 trillion

• $16.7 trillion

• $10 trillion

• $5 trillion

What does a liberal economic view suggest to stimulate the economy?

• Decrease government spending

• Increase taxes

• Increase government spending

• Reduce regulations

According to conservative views, what leads to job creation?

• Increasing government spending

• Decreasing government regulation

• Decreasing taxes

• Increasing taxes

What is the prime lending rate?

• The interest rate for consumer loans

• The Federal Reserve's rate to banks

• The mandatory savings rate for banks

• The tax rate on corporate profits

What happens when the Federal Reserve increases the prime lending rate?

• Consumer spending increases

• The cost of borrowing decreases

• More money is printed

• The cost of borrowing increases

What is one method the Federal Reserve uses to control inflation?

• Changing educational policies

• Adjusting healthcare subsidies

• Modifying interest rates

• Altering agricultural subsidies

Who appoints the head of the Federal Reserve?

• The U.S Congress

• The President

• The Supreme Court

• State Governors