Business Cycle, Monetary Policy, and Fiscal Policy

Front

Who is responsible for making fiscal policy decisions?

Back

The President and Congress

Front

The federal government's overall approach to spending and taxes is called

Back

Fiscal Policy

Front

The headline below indicates which type of policy: "Fed unleashes another big rate hike in bid to curb inflation"

Back

Monetary policy

Front

Monetary policy decisions are made by: Congress, Senate, The Fed, President

Back

The Fed

Front

Taxing and spending are tools of

Back

fiscal policy

Front

In order to help the economy grow, the government will decrease or lower taxes. This allows people to have more money and buy more goods and services.

Back

fiscal policy

Front

What can the government do to slow the economy in order to reduce inflation? Options: lower taxes, raise taxes, spend more

Back

raise taxes

Front

To help the economy grow, the government can: increase spending, decrease spending, lower the minimum wage, raise taxes

Back

increase spending

Front

The action by the FED to adjust the size of the money supply, and to adjust interest rates in order to keep prices down and employment high.

Back

monetary policy

Front

In order to help the economy grow, the FED may __________ the reserve requirement, allowing banks to loan more money to people so that they spend more.

Back

lower