Fiscal Policy

Front

Who is in charge of fiscal policy?

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Government

Front

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

Back

The President and Congress

Front

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

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expansionary policy

Front

Taxing & spending to slow the economy is referred to as

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contractionary policy

Front

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

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Fiscal Policy

Front

An example of expansionary fiscal policy would be: cutting taxes., cutting government spending., cutting production of consumer goods., cutting prices of consumer goods.

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cutting taxes.

Front

If the unemployment rate is rising and GDP is falling, what fiscal policy action should the federal government MOST likely follow? Options: decreasing taxes, decreasing spending, decreasing the money supply, decreasing the reserve requirement.

Back

decreasing taxes.

Front

If an economy experiences a dramatic rise in prices, which fiscal policy action could be taken? Options: Selling securities on the open market, Raising interest rates, Reducing government spending, Raising reserve requirements

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Reducing government spending

Front

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

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True

Front

The Federal government is concerned that economic growth is too high, that it is unsustainable, and that inflation is resulting. Which fiscal policy might be enacted to reduce inflation? Options: Increasing taxation, Open market sales, decreasing taxation, Increasing government spending

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Increasing taxation