Monetary and Fiscal Policy

Monetary policy refers to what?

• How government regulates the amount of money in circulation

• The federal government’s overall approach to spending, borrowing, and taxation.

• A general, sustained upward movement of prices for goods and services in an economy.

• The upper limit set on the amount of money the government may borrow to meet its existing legal obligations.

Whose job is it to control the money supply?

• The Executive Branch of Government

• The Legislative Branch of Government

• Federal Reserves

• President

Fiscal policy deals with what?

• How government regulates the amount of money in circulation

• Government expenditures in excess of government revenues.

• A general, sustained upward movement of prices for goods and services in an economy.

• Raising taxes and using the money that's raised

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

• Physical Policy

• Fiscal Policy

• вежба

• Monetary Policy

Monetary Policy is the Federal Reserve Systems attempt to...

• control the amount of money in circulation

• control the Federal Government's debt

• control state governments' spending

• none of these answers are correct.

Who is responsible for making fiscal policy decision?

• The President and Congress

• The Federal Reserve System

• The National Council of Economic Advisors

• The Department of Commerce

Monetary policy decisions are made by:

• Congress

• President

• Senate

• The Fed

To help the economy grow, the government can

• increase spending

• decrease spending

• lower the minimum wage

• raise taxes

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

• lower

• raise

• spend more

• save more

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

• monetary lending

• fiscal spending

• reserve requirement

• lending policy