Fiscal Policy

Fiscal Policy

Assessment

Interactive Video

Social Studies

12th Grade

Practice Problem

Easy

Created by

Taylor Montgomery

Used 2+ times

FREE Resource

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does fiscal policy primarily relate to?

Government decisions on interest rates and money supply.

Government decisions on taxation and spending.

Central bank actions to control inflation.

International trade agreements.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following are categories of government spending mentioned in the video?

Services, transfer payments, and investment.

Taxation, borrowing, and interest rates.

Monetary policy, fiscal policy, and trade policy.

Private consumption, private investment, and net exports.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is an expansionary fiscal policy designed to do during a recession with high unemployment?

Decrease government spending and increase taxes.

Increase government spending or reduce taxes to increase aggregate demand.

Reduce the money supply to control inflation.

Encourage private investment by raising interest rates.

4.

MULTIPLE CHOICE QUESTION

30 sec • Ungraded

Are you enjoying the video lesson?

Yes

No

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the "crowding out effect" in the context of expansionary fiscal policy under full employment?

Government spending stimulating private consumption.

Increased government investment replacing private investment due to limited resources.

Reduced taxes leading to increased savings by individuals.

Government borrowing leading to lower interest rates.