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WorksheetsMonetary and Fiscal policy
Total questions: 25
Worksheet time: 20mins
The government's overall approach to spending and taxes is called
Physical Policy
Fiscal Policy
вежба
Monetary Policy
An example of expansionary is what? (Multiple answers - must pick all to receive credit)
Hint...two answers should be selected.
Decrease taxes
Raise taxes
Government spends more on Science research
Government cuts organizations like the National Science Foundation
Examples of contractionary fiscal policy includes which of the following (choose all correct answers)? Hint...two answers should be selected.
Raise taxes on corporations
Lower the corporate tax rate
Government increases spending on research in Antarctica
Government cuts spending on education
Expansionary Monetary Policy involves increasing the money supply and govt. spending
True
False
Contractionary Fiscal Policy involves
increase the money supply and increase interest rates
increasing govt. spending and decrease taxes
decrease interest rates decrease money supply
decrease govt. spending and increase taxes
Monetary Policy is implemented by
The Federal Budget
Central Bank
Congress and the President
Taxing and govt. spending
Central Bank
Raising the reserve requirement reduces the amount of _____________ and lowering it pumps more money into the economy.
money in circulation
taxes on corporations
sales tax
Fiscal or Monetary Policy: Government increases taxes on individuals and businesses
fiscal
monetary
Expansionary or Contractionary: Government decreases taxes on individuals and businesses
expansionary
contractionary
Expansionary or Contractionary: Central Bank lowers the reserve requirement
expansionary
contractionary
Expansionary or Contractionary: government spends more on roads and factories
expansionary
contractionary
Expansionary or Contractionary: the Central Bank sells bonds on the Open Market
expansionary
contractionary
The central bank requirement to keep a certain percentage of money at the bank is know as the ...
Which policy is the following statement associated with?
“Several… policymakers recently have suggested that they’re inclined to support more bond purchases if the …economy doesn’t pick up.”
Which policy is the following statement associated with?
“The plan Obama sent to Congress today asks for higher taxes for corporations, banks and oil, natural gas and coal companies.”
Which policy is the following statement associated with?
“...Officials decided to announce they would keep interest rates near zero until the unemployment rate drops to 6.5%.”
Which policy is the following statement associated with?
“The 2013 government budget included job-creation initiatives for infrastructure, job-training and innovation”. To offset the cost, it “called for raising $1.5 trillion over 10 years from the wealthiest taxpayers by closing some corporate tax breaks, chiefly for oil and gas companies.”
Finish the statement: Monetary policy affects the _____________________, primarily through changing _____________.
money supply, interest rates
Budget, fiscal policy
interest rates, reserve requirement
Federal Reserve, printing money
If you want to slow down the economy, the Central Bank can _________ the money supply by __________ interest rates.
increase, decreasing
decrease, increasing
maintain, maintain
increase, increase
