Monetary and Fiscal Review

In the United States, (a)   is responsible for making decisions about government spending and taxation, which are key parts of fiscal policy.

• Federal Reserve

• Treasury Department

• Congress

• White House

Imagine you are discussing how the United States government decides how much to spend on public services and how much to collect in taxes. What is the term for the federal government's overall approach to spending and taxes?

• The Federal Open Market Committee

• Fiscal Policy

• The Federal Reserve

• Monetary Policy

Imagine the U.S. government is considering ways to stimulate the American economy. Which of the following actions would help boost economic activity in the United States? Choose all that apply!

• Decrease taxes

• Raise taxes

• Government spends more on Science research

• Government cuts funding to organizations like the National Science Foundation

(a)   policy:

"The Federal Reserve announces another significant interest rate hike to tackle rising inflation in the United States."

• Inflation Control

• Economic Growth

• Interest Rates

• Federal Reserve

Who is in charge of Fiscal Policy

• The Banks

• The People

• The Fed

• Congress

• President

In the United States, a popular fast-food restaurant wants to boost its business, so the owner decides to lower the price of burgers. This allows customers to have more money to spend on other goods and services.

• fiscal policy

• monetary policy

In the United States, what can honey producers do to slow down the bee population boom in order to keep honey prices stable?

• lower honey prices

• raise honey prices

• harvest more honey

In the United States, a local restaurant wants to boost its business. What can the owner do to help the economy grow?

• increase spending

• decrease spending

• lower the minimum wage

• raise taxes

Imagine you are watching a news report about the U.S. economy. The anchor explains that the Federal Reserve (the FED) wants to help Americans spend more and boost economic growth. To do this, the FED may____________the reserve requirement, allowing banks across the country to lend more money to people so they can make purchases.

• lower

• raise

• ignore

• end

Imagine you are a bank manager in New York City. The FED wants to slow down the U.S. economy. To do this, the FED may ____________ the reserve requirements, meaning your bank will have less money to loan out to customers.

• increase

• decrease

• spend more

• tax more