Monetary and Fiscal Policies

This is the federal budget created to spend tax dollars

• monetary policy

• fiscal policy

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Fiscal

Who is in control of deciding how we spend our tax dollars?

• The Federal Reserve

• The President and Congress

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Fiscal

Check all that apply: Methods used to influence fiscal policy / the budget

• Open Market Operations (securities and bonds)

• adjust amount of govt. spending

• adjust the discount rate

• adjust the reserve requirement for banks

• adjust tax rates

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Fiscal

If INFLATION is rising, what would be the appropriate FISCAL policy?

• expansionary policies such as lower taxes and increasing govt. spending

• contractionary policies such as raising taxes and decreasing govt. spending

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inflation

If UNEMPLOYMENT is rising, what would be the appropriate FISCAL policy?

• expansionary policies such as lower taxes and increasing govt. spending

• contractionary policies such as raising taxes and decreasing govt. spending

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unemployment

This is controlling the amount of money in circulation

• monetary policy

• fiscal policy

Tags

Monetary

Who is in control of monetary policy?

• The Federal Reserve

• The President and Congress

Tags

Monetary

Check all that apply: Tools used by the Federal Reserve to influence the monetary supply

• Open Market Operations (securities and bonds)

• adjust amount of govt. spending

• adjust the discount rate

• adjust the reserve requirement for banks

• adjust tax rates

Tags

Monetary

If inflation is rising, what policy does the Federal Reserve want?

• tight money to make money more scarce and contract economic growth

• loose money to make money more abundant and expand the economy

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inflation

If inflation is rising, what should the Federal Reserve do to the reserve requirement?

• Raise it so that loans cost more interest; overall people will take out less loans/debt

• Lower it so that loans cost less interest; overall people will take out more loans/debt

Tags

inflation