Fiscal and Monetary Policy Practice 2025

(a)   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

The headline below indicates (a)   policy:

"Fed unleashes another big rate hike in bid to curb inflation"

• Fiscal policy
• Monetary policy

Monetary policy decisions are made by (a)  

• Congress
• Senate
• The Fed
• President

Taxing and Spending are tools of

• fiscal policy

• monetary policy

Is a joint effort between the executive and legislative branches

• 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