Fiscal Policy Quiz

Fiscal Policy Quiz

University

25 Qs

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Fiscal Policy Quiz

Fiscal Policy Quiz

Assessment

Quiz

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University

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Created by

Carmelo Torino

Used 3+ times

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25 questions

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1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What is fiscal policy primarily concerned with?

Control of money supply

Government spending and taxation

Regulation of financial institutions

Exchange rate management

2.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Which of the following is an example of expansionary fiscal policy?

Increasing taxes

Decreasing government spending

Increasing government spending

Selling government bonds

3.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What is the primary goal of contractionary fiscal policy?

Increase inflation

Reduce budget deficits

Decrease aggregate demand

Stimulate economic growth

4.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Which of the following can lead to a budget deficit?

Government spending exceeds revenue

Revenue exceeds government spending

Balanced budget

Surplus funding of public projects

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What is a potential long-term effect of persistent budget deficits?

Increased public investment

Lower interest rates

Higher levels of national debt

Economic recession

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

How does an increase in government spending during a recession theoretically impact the economy?

It decreases aggregate demand.

It increases aggregate demand.

It has no effect on inflation.

It reduces unemployment immediately.

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

If a government decides to cut taxes to stimulate the economy, what is a possible negative consequence?

Increased public services

Worsening budget deficits

Higher disposable income

Increased investment

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