Fiscal Policy/Monetary Policy

Front

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

Back

Fiscal Policy

Front

Who is responsible for making fiscal policy decisions?

Back

The President and Congress

Front

The headline below indicates which type of policy:
"Fed unleashes another big rate hike in bid to curb inflation"

Back

Monetary Policy

Front

Monetary policy decisions are made by: Congress, Senate, The Fed, President

Back

The Fed

Front

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

Back

lower

Front

In order to slow the economy, the FED may____________ the reserve requirements and there will be less money to loan out to people.

Back

increase

Front

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

Back

reserve requirement

Front

What is the interest rate the FED charges banks to borrow money that is lowered to help the economy grow and raised to slow the economy?

Back

discount rate

Front

If the Federal Reserve System wanted to stimulate the U.S. economy and reduce unemployment, it would

Back

cause interest rates to decrease because low interest rates encourage business growth and expansion

Front

Which of the following is not a tool of fiscal policy?
taxing,
spending,
All of these options are tools of fiscal policy.,
interest rates

Back

interest rates