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13 questions
The government's overall approach to spending and taxes is called
Physical Policy
Fiscal Policy
Money
Monetary Policy
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.
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
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
True or False -- the Bank of England helps with fiscal policy
True
False
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