Fiscal policy

What is the function of the government budget?

• To provide for private goods

• To increase national debt

• To establish a stable economy

• To reduce public finance

What is the main purpose of expansionary fiscal policy?

• To cause the economy to run rapidly

• To reduce government spending

• To increase public finance

• To decrease aggregate demand

What is the National Debt?

• The government increases public finance

• The government reduces taxes

• The government spends more than its revenue

• The government borrows money

What does the public sector consist of?

• Non-profit organizations

• National and local agencies of the government

• Private companies

• International organizations

What is the main concern of fiscal policy?

• Creation of a national budget

• Public finance and national budget

• Private goods and services provided by individuals

• Government expenditure and taxes that influence economic activity

What are the components of the public sector?

• Non-profit organizations

• National and local agencies of the government

• Private companies

• International organizations

What does the term 'National Debt' refer to?

• The government increases public finance

• The government reduces taxes

• The government spends more than its revenue

• The government borrows money

What is the primary goal of fiscal policy?

• To provide for private goods

• To increase national debt

• To establish a stable economy

• To reduce public finance

What is the purpose of contractionary fiscal policy?

• To cause the economy to run slowly

• To increase government spending

• To decrease public finance

• To decrease aggregate demand

What is the role of the public sector in the economy?

• Providing goods and services for profit

• Regulating private companies

• Providing goods and services for the public good

• Investing in international organizations