Economic Policy

Which type of policy refers to decisions on taxing and spending?

• Fiscal policy

• Monetary policy

Which type of policy refers to decisions on the money supply and interest rates?

• Fiscal policy

• Monetary policy

Which of these philosophies believes the best way to achieve balance between supply and demand is through fiscal policy?

• Keynesian economics

• Monetarism

• Supply-side economics

Which of these philosophies believes the best way to achieve balance between supply and demand is through monetary policy?

• Keynesian economics

• Monetarism

• Supply-side economics

A ____________________ occurs when annual expenditures (costs) exceed annual revenues (money supply).

• Deficit

• Surplus

• Debt

A _____________________ is an excess of government revenue over expenses.

• Deficit

• Surplus

• Debt

_____________________ has ultimate responsibility for enacting the federal budget into law.

• Congress

• The president

• The bureaucracy

• The Supreme Court

What are the two mandatory costs in the federal budget?

• National defense

• Human resources (social welfare)

• Interest payments

• Physical resources

An ________________ is the congressional decision to create or continue a program and the agency administering it.

• Authorization

• Appropriation

An ________________ is the congressional decision to fund an authorized program with a specific sum of money.

• Authorization

• Appropriation