Government Policy and Spending

Which of the following are responsible for making fiscal policy decision? 

• The President and Congress

• The Federal Reserve System

• The National Council of Economic Advisors

• The commerce Department

An example of expansionary fiscal policy would be

• cutting taxes.

• cutting government spending.

• cutting production of consumer goods.

• cutting prices of consumer goods.

Fiscal Policy is the means by which the government keeps the economy stable through taxes and programs provided to the people.

• True

• False

is responsible for making fiscal policy decisions. 

• The President and Congress

• The Federal Reserve System

• The National Council of Economic Ad

• The Federal Open Market Committee

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

• The Federal Open Market Committee

• Fiscal Policy

• The Federal Reserve

• Monetary Policy

Which of the following would stimulate the economy? Choose all that apply!

• Decrease taxes

• Raise taxes

• Government spends more on Science research

• Government cuts funding to organizations like the National Science Foundation

Taxing and Spending are tools of

• fiscal policy

• monetary policy

In order to help the economy grow, the government will decrease or lower taxes. This allows people to have more money and buy more goods and services.

• fiscal policy

• monetary policy

What can the government do to slow the economy in order to reduce inflation?

• lower taxes

• raise taxes

• spend more

To help the economy grow, the government can

• increase spending

• decrease spending

• lower the minimum wage

• raise taxes