Exploring Fiscal and Monetary Policy in AP Government

The video provides an introduction to fiscal and monetary policy, highlighting their similarities and differences. Fiscal policy, set by Congress, involves taxes and government spending to influence economic growth. Monetary policy, managed by the Federal Reserve, focuses on interest rates and money supply to regulate economic stability. The video also discusses the political aspects of these policies and offers resources for further learning.

What is a common goal of both fiscal and monetary policy?

• To regulate educational standards

• To influence economic growth

• To manage international relations

• To oversee healthcare systems

Who sets fiscal policy?

• The President

• Congress

• The Federal Reserve

• State Governments

What are the two main tools of fiscal policy?

• Taxes and government spending

• Healthcare and education funding

• Interest rates and money supply

• Import and export regulations

What is a primary purpose of fiscal policy?

• To set educational curriculums

• To fund government operations

• To manage national parks

• To regulate stock markets

Who is responsible for setting monetary policy in the United States?

• State Governments

• The Federal Reserve

• Congress

• The President

What does monetary policy primarily deal with?

• Education and healthcare

• Taxes and budgeting

• Interest rates and the money supply

• Infrastructure and transportation

How does the Federal Reserve aim to influence economic growth?

• By changing education policies

• By encouraging or discouraging borrowing

• By regulating international trade

• By adjusting tax rates

What is one way the Federal Reserve can cool off an overheating economy?

• Increasing government spending

• Cutting taxes

• Raising interest rates

• Expanding healthcare programs

What makes the Federal Reserve less politically influenced than fiscal policy?

• Its decisions must be approved by the President

• Its members are elected by the public

• Its policies are set by Congress

• Its Board of Governors is appointed for 14-year terms

What is a key difference between fiscal and monetary policy?

• Fiscal policy is set by Congress, while monetary policy is set by the Federal Reserve

• Monetary policy deals with taxes, whereas fiscal policy does not

• Monetary policy is less important for economic growth

• Fiscal policy is concerned with education, while monetary policy is not