Fiscal and monetary policy

Front

What is the term for the government policy regarding taxes and spending? Options: Fiscal Policy, Monetary Policy

Back

Fiscal Policy

Front

What is the relationship between Money Supply and Interest Rates? Options: Fiscal Policy, Monetary Policy

Back

Monetary Policy

Front

What is the goal of expansionary fiscal policy?

Back

Increase government spending

Front

If the government wants to foster economic expansion, they should: Increase spending & cut taxes

Back

Increase spending & cut taxes

Front

What impact would cutting the discount rate have?

Back

Increased borrowing & spending

Front

Who is in control of Monetary policy?

Back

Federal Reserve

Front

If the Fed lowers the reserve requirement, there is more money in:

Back

Banks

Front

Lowering the reserve requirement would foster

Back

Economic expansion

Front

If the Open Market Committee wants to foster economic expansion, they should: Buy Bonds/Securities, Sell Bonds/Securities, Print more $, Raise Taxes

Back

Buy Bonds/Securities

Front

To control inflation, the Open Market Committee should: Buy bonds/securities, Sell bonds/securities, Cut taxes, Print more money

Back

Sell bonds/securities