15 questions
Fiscal Policy is controlled by...
The Government
The Federal Reserve System
The states
The Department of Commerce
The two "tools" of Fiscal Policy are:
the power to tax
the power to spend
the power to borrow money
the power to print money
During a economic expansion, the Federal Government should use...
an expansionary fiscal policy
a contractionary fiscal policy
During a contraction / recession, the Federal Government should use
an expansionary fiscal policy
a contractionary fiscal policy
Which of the following statements is true?
Contractionary monetary policy would increase government revenue & slow down the economy.
Contractionary fiscal policy would decrease the reserve requirement & slow down the economy.
Contractionary fiscal policy would lead to an increase in the national debt.
Contractionary monetary never works
What makes up the largest area of government spending?
Food Stamps
Medicare
Social Security
Interest payments