Fiscal & Monetary Policy

1.

Multiple Choice

30 sec

1 pt

Which of the following is responsible for fiscal policy?

the Federal Bureau of Investigation

the Federal Reserve

Congress & the President

the Federal Reserve banks

2.

Multiple Choice

30 sec

1 pt

Which of the following statements is true?

Contractionary monetary policy would increase government revenue & slow down the economy.

Contractionary fiscal policy would decrease the money supply & slow down the economy.

Contractionary fiscal policy would lead to a decrease in national debt.

Contractionary monetary policy leads to a budget deficit.

3.

Multiple Choice

30 sec

1 pt

Which fiscal policy tool would be used if the economy were in a trough?

increase the money supply

increase individual tax rate

decrease the money supply

increase government spending

4.

Multiple Choice

45 sec

1 pt

Which of the following fiscal policy tools would decrease the national debt?

increase income taxes

decrease income taxes

increase money supply

decrease money supply

5.

Multiple Select

30 sec

1 pt

Which of the following are fiscal policy tools (select 2)?

adjusting the reserve requirement

adjusting the discount rate

changing government spending

changing income taxes

buying/selling bonds via open market operations

6.

Multiple Choice

30 sec

1 pt

Which monetary policy tool would speed up the economy?

increasing reserve requirement to decrease the money supply

decreasing income taxes

increasing government spending

decreasing interest paid on reserves to increase the money supply

7.

Multiple Select

30 sec

1 pt

Which is true of a surplus?

(Select 2.)

a surplus is extra

a surplus is not enough

a surplus decreases the national debt

a surplus increases the national debt

8.

Multiple Choice

30 sec

1 pt

Which combination of fiscal and monetary policy would speed up the economy?

increase income taxes; increase the money supply

decrease income taxes; increase money supply

increase gov't spending; decrease money supply

decrease gov't spending; decrease the money supply

9.

Multiple Choice

30 sec

1 pt

Which monetary policy tool would be expansionary?

decrease reserve requirement to increse the money supply

increase discount rate to decrease the money supply

increase interest paid on reserves to decrease the money supply

selling bonds via open market operations to decrease the money supply

10.

Multiple Select

30 sec

1 pt

Choose the fiscal policy tools that would increase economic activity. (SELECT 2.)

increase taxes

decrease taxes

increase government spending

decrease government spending

decrease discount rate to increase the money supply

11.

Multiple Choice

30 sec

1 pt

The President is directly involved with which of the following?

fiscal policy

monetary policy

setting interest rates

changing the money supply

12.

Multiple Select

30 sec

1 pt

Which of the following are related to adjusting the supply of money and credit? (SELECT 2.)

monetary policy

fiscal policy

adjusting amounts banks may loan out to customers

decreasing income taxes consumers have to pay

preparing US budget

13.

Multiple Choice

30 sec

1 pt

If the government is concerned about unemployment, which fiscal policy tool would they use?

increase government spending

increase income taxes

increase reserve requirement to decrease the money supply

increase discount rate to decrease the money supply

14.

Multiple Choice

45 sec

1 pt

How are monetary policy and fiscal policy similar?

They are both done by the President.

They are both done by the Fed.

They are both used to keep the economy stable.

They both use four tools.

15.

Multiple Choice

30 sec

1 pt

The Federal Reserve sells bonds to decrease the money supply. What type of policy is this?

Contractionary Fiscal Policy

Expansionary Fiscal Policy

Contractionary Monetary Policy

Expansionary Monetary Policy

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