WorksheetsFiscal Policy
Total questions: 46
Worksheet time: 1hrs 13mins
Fiscal Policy is controlled by...
The Government
The Federal Reserve System
The states
The Department of Commerce
When is the fiscal year?
January 1- Dec 31st
July 4th- July 3rd
April 1st- march 31st
Oct 1st- Sept 30th
What makes up the largest area of government spending?
Food Stamps
Medicare
Social Security
Interest payments
The tools of fiscal policy are...
Interest rates
Government spending, taxation and borrowing
Checks and balances
Open market operations
Increasing taxes...
increases money supply
decreases money supply
Decreasing taxes...
increases money supply
decreases money supply
is the accumulation of all the budget deficits over time.
Budget Deficit
Budget Surplus
National Debt
Global Debt
Welfare programs people can benefit from if they qualify
capital budget
personal property
entitlement programs
operating budget
When you are ready to file for taxes you must have form ______ that you give to your employer.
W-2
W-6
WD40
W-2484
The easy way to file for taxes is using form
1800
1745
1999EZ
1040EZ
When filing for taxes, the government will inform you if you receive or pay the government. This is called
Tax write-off
Taxation
Tax profit
Tax return
Our tax money is spent on all of the following EXCEPT:
Social Security
The Military
Private School Education
National Parks
Which of the following is NOT a category in the Federal government's spending?
Mandatory spending
Discretionary spending
Interest on loans issued
Interest on national debt
Which of the following items would you pay an Excise tax on? (Select all that apply)
Defense Spending falls under the category of...
Mandatory Spending
Discretionary Spending
the Federal Government earns most of its money from...
Corporate Tax
Social Security and Retirement
Individual Income Tax
Which is true of the American tax system?
The less you make, the more you get taxed.
The more you make, the higher percentage tax is taken out.
The more you make the lower you get taxed.
If you are cool, you don't get taxed at all.
Where does the largest share of federal tax revenue come from?
Corporate taxes
General sales taxes
Individual income taxes
Property taxes
Fiscal spending can increase the overall stimulus in the economy if the same funds are spent by several people. This is called the _____________ effect.
supply side
keynsian economics
implementation lag
multiplier
Government spending that is required by existing laws to spend on certain programs.
Revenue
Discretionary spending
Mandatory spending
Fiscal policy
Government spending determined by the President and Congress each year in the budget and appropriations process.
Revenue
Discretionary spending
Mandatory spending
Fiscal policy
What is the equation used to find a nations GDP?
GDP = C + I + G + (M - X)
GDP = C + I + G + (X - M)
GDP = C + I + X + (X - M)
GDP = (1/MPS)*G + I + C
Which is NOT part of GDP:
Consumer spending
Investment spending
Government Spending
Private Spending
What government program was created to help provide aid for the people with disabilities?
Medicare
Social Security
Medicine
Medicaid
What government program was created to provide care for the elderly?
medicare
medicaid
social security
unemployment
Which of the following is not a potential problem for the government to use spending as a successful fiscal tool?
Timing
Uncertainty of the money multiplier
politics
There are not problems with this tool and its fine for the government to spend money.
The term expenditures mean...
revenue
spending
taxation
collections
Which of the following fiscal policy tools would decrease the national debt?
increase income taxes
decrease income taxes
increase money supply
decrease money supply
What makes up the largest area of government spending?
Food Stamps
Medicare
Social Security
Interest payments
Which of the following is an example of a regressive tax?
Property tax
Sales tax
Corporate tax
Income tax
Which tax is primarily used to fund social security programs?
Sales tax
Estate tax
Payroll tax
Excise tax
What is the money multiplier effect?
The stabilization of money supply by the central bank
The reduction in money supply due to taxation
The increase in money supply due to government spending
The process by which banks create money through lending
How does an increase in reserve requirements impact the money multiplier?
It increases the money multiplier
It decreases the money multiplier
It has no effect on the money multiplier
It stabilizes the money multiplier
What is the marginal propensity to save (MPS)?
The fraction of total income that is consumed
The fraction of additional income that is saved
The total amount of income saved
The total amount of income consumed
If the marginal propensity to save is 0.2, what is the marginal propensity to consume?
0.8
1.0
0.2
0.5
How does an increase in the marginal propensity to save affect the economy?
It has no effect on consumer spending
It increases government spending
It decreases consumer spending
It increases consumer spending
What is the marginal propensity to spend?
The total income spent on consumption
The fraction of additional income that is spent on consumption
The fraction of income saved
The total income saved
What is the money multiplier equation used to determine?
The interest rate set by the central bank
The total amount of money in circulation
The potential maximum amount of money that can be created by the banking system
The total reserves held by banks
Which factor directly affects the money multiplier in an economy?
Inflation rate
Reserve requirement ratio
Government spending
Tax rates
If the reserve requirement is 10%, what is the theoretical money multiplier?
25
10
5
20
