Fiscal Policy

Fiscal Policy is controlled by...

• The Government

• The Federal Reserve System

• The states

• The Department of Commerce

When is the fiscal year?

• January 1- Dec 31st

• July 4th- July 3rd

• April 1st- march 31st

• Oct 1st- Sept 30th

The Federal 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

When the government raises taxes, what does it take out of circulation?

• Money
• Credit
• People
• Jobs

What makes up the largest area of government spending?

• Food Stamps

• Medicare

• Social Security

• Interest payments

The tools of fiscal policy are...

• Interest rates

• Government spending, taxation and borrowing

• Checks and balances

• Open market operations

Increasing taxes...

• increases money supply

• decreases money supply

Decreasing taxes...

• increases money supply

• decreases money supply

is the accumulation of all the budget deficits over time. 

• Budget Deficit

• Budget Surplus

• National Debt

• Global Debt

Welfare programs people can benefit from if they qualify

• capital budget

• personal property

• entitlement programs

• operating budget