EPF, Module 3, Fiscal Policy

What is the role of the President's Office of Management and Budget (OMB)?

• To create laws

• To prepare the federal budget

• To enforce taxes

• To manage public relations.

Which tax is typically not collected by the federal government?

• Income Tax

• Sales Tax

• Corporate Tax

• Excise Tax

Which of the following is a correct statement about federal revenue sources?

• Social Security Taxes are not a source

• Borrowing is a minor source

• Individual income taxes are a major source

• Corporate Income Taxes are not a source

Fiscal Policy is controlled by...

• The Government

• The Federal Reserve System

• The states

• The Department of Commerce

The two "tools" of Fiscal Policy are:

• the power to tax

• the power to spend

• the power to borrow money

• the power to print money

Taxing & spending to help the economy grow is referred to as

• expansionary policy
• monetary policy
• contractionary policy
• budget deficit

Taxing & spending to slow the economy is referred to as 

• budget surplus 
• monetary policy
• contractionary policy
• budget deficit

When the government raises taxes, what does it take out of circulation?

• Money
• Credit
• People
• Jobs

What makes up the largest area of government spending?

• Food Stamps

• Medicare

• Social Security

• Interest payments

 A situation in which income exceeds expenditures.

• surplus

• deficit