Government & Economy - Fiscal & Monetary Policy

Fiscal policy is...

• government spending and taxation

• interest rates

• the stock market

• congressional choices

Monetary policy is...

• government spending and taxation

• Federal Reserve policies to keep the economy stable

• the stock market

• congressional choices

Who sets Fiscal Policy?

• Congress and the President set Fiscal Policy.

• Private corporations set Fiscal Policy.
• The central bank sets Fiscal Policy.
• International organizations set Fiscal Policy.

Who sets Monetary Policy?

• Congress and the President set Fiscal Policy.

• Private corporations set Fiscal Policy.
• The central bank, the Federal Reserve, sets Fiscal Policy.

• International organizations set Fiscal Policy.

Which of the following is an example of Fiscal Policy being made?

• Wall Street lobbies the Supreme Court to rule in their favor.

• The Federal Reserve decides to cut interest rates.

• Congress passes a bill to raise taxes on the wealthy.

• The stocks become publicly traded.

Which of the following is an example of monetary policy being made?

• Wall Street lobbies the Supreme Court to rule in their favor.

• The Federal Reserve decides to cut interest rates.

• Congress passes a bill to raise taxes on the wealthy.

• The stocks become publicly traded.

Does the headline demonstrate fiscal policy or monetary policy?

• Fiscal Policy

• Monetary Policy

Does the headline demonstrate fiscal policy or monetary policy?

• Fiscal Policy

• Monetary Policy

In your own words, define fiscal policy.

In your own words, define monetary policy.