Monetary and Fiscal Policy

Fiscal policy deals with what?

• How government regulates the amount of money in circulation

• Government expenditures in excess of government revenues.

• A general, sustained upward movement of prices for goods and services in an economy.

• Raising taxes and using the money that's raised

Congress and the President are responsible for implementing

• Monetary policy

• Fiscal policy

America's central bank is known as what?

• Congress

• Federal Reserves

• White House

• Bank of America

To help the economy grow, the government can

• increase spending

• decrease spending

• lower the minimum wage

• raise taxes

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

• Money

• Credit

• People

• Jobs

If Congress increases government spending by the same amount it increases taxes aggregate demand will

• remain the same
• decrease, these are both contractionary
• increase
• shift down

Monetary Policy is the Federal Reserve Systems attempt to...

• control the amount of money in circulation

• control the Federal Government's debt

• control state governments' spending

• none of these answers are correct.

The amount that all banks have to keep in the reserve and they can't loan out to people

• monetary lending

• fiscal spending

• reserve requirement

• lending policy

Whose job is it to control the money supply?

• The Executive Branch of Government

• The Legislative Branch of Government

• Federal Reserves

• President

Monetary policy decisions are made by:

• Congress

• President

• Senate

• The Fed