What is fiscal policy?
Fiscal Policy

Quiz
•
Social Studies
•
12th Grade
•
Medium
Ben Slaton
Used 8+ times
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A strategy for international trade
A set of government tools to fight unemployment or inflation
A monetary policy tool used by the Federal Reserve
A method of regulating the stock market
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Who can implement changes in fiscal policy?
The Federal Reserve
Banks and financial institutions
State governments
The President and Congress
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does an increase in taxes lead to?
Decreased disposable income
Increased investment by businesses
Increased government spending
Higher inflation rates
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the purpose of expansionary fiscal policy?
To reduce government spending
To increase taxes
To fight unemployment
To increase the national debt
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens when government spending increases?
Decrease in consumer spending
Increase in taxes
Increase in consumer spending
Decrease in national debt
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is an example of a transfer payment?
Government salaries
Unemployment compensation
Corporate subsidies
Infrastructure spending
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the effect of contractionary fiscal policy?
Both reduced inflation and increased unemployment
Reduced inflation
Increased inflation
Increased unemployment
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