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- 1. Multiple ChoiceWho is in charge of fiscal policy?GovernmentFederal Reserve
- 2. Multiple ChoiceTaxing & spending to help the economy grow is referred to asexpansionary policymonetary policycontractionary policybudget deficit
- 3. Multiple ChoiceTaxing & spending to slow the economy is referred to asbudget surplusmonetary policycontractionary policybudget deficit
- 4. Multiple Choice
The government's overall approach to spending and taxes is called
Physical Policy
Fiscal Policy
Money
Monetary Policy
- 5. Multiple ChoiceAn example of expansionary fiscal policy would becutting taxes.cutting government spending.cutting production of consumer goods.cutting prices of consumer goods.
- 6. Multiple Choice
If the unemployment rate is rising and GDP is falling, the fiscal policy action that the government should MOST likely follow is
decreasing taxes.
decreasing spending.
decreasing the money supply.
decreasing the reserve requirement.
- 7. Multiple Choice
If an economy experiences a dramatic rise in prices, which fiscal policy action could be taken?
Selling securities on the open market
Raising interest rates
Reducing government spending
Raising reserve requirements
- 8. Multiple ChoiceFiscal Policy is the means by which the government keeps the economy stable through taxes and programs provided to the people.TrueFalse
- 9. Multiple Choice
The government is concerned that economic growth is too high, that it is unsustainable, and that inflation is resulting. Which of the following fiscal policies might be enacted to reduce inflation?
Increasing taxation
Open market sales
decreasing taxation
Increasing government spending
- 10. Multiple ChoiceAn example of expansionary fiscal policy would becutting taxes.cutting government spending.cutting production of consumer goods.cutting prices of consumer goods.
- 11. Multiple ChoiceWhich of the following is not a tool of fiscal policy?TaxingSpendingInterest RatesAll of these options are tools of fiscal policy.
- 12. Multiple ChoiceWhen the government raises taxes, what does it take out of circulation?MoneyCreditPeopleJobs
- 13. Multiple Choice
True or False -- the Bank of England helps with fiscal policy
True
False
- Answer choicesTagsAnswer choicesTags