Fiscal Policy Quizz

Taxing & spending to help the economy grow is referred to as

• expansionary policy
• monetary policy
• contractionary policy
• budget deficit

Taxing & spending to slow the economy is referred to as 

• budget surplus 
• monetary policy
• contractionary policy
• budget deficit

The federal government's overall approach to spending and taxes is called

• Physical Policy
• Fiscal Policy
• Money
• Monetary Policy

If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government should MOST likely follow is 

• decreasing taxes.
• decreasing spending.
• decreasing the money supply.
• decreasing the reserve requirement.

Fiscal Policy is the means by which the government keeps the economy stable through taxes and programs provided to the people.

• True
• False

A deficit budget is one where

• government revenue is less than government spending

• government revenue exceeds government revenue

• spending on imports exceeds export earnings

• spending on imports is less than export earnings.

The most desirable budget outcome is

• a balanced budget.

• a surplus budget.

• a deficit budget

• one appropriate for current economic conditions.

What is Fiscal Policy?

• Use of gov't spending and tax policies to

  influence economic conditions

• A central bank influencing a nation's money supply

Which of the following results should be included where the question mark appears in the illustration?

• unemployment
• inflation
• consumer spending
• production

Which items on the graph are part of M1?

• currency and savings deposits
• currency, traveler’s checks plus demand deposits, and other checkable deposits
• other checkable deposits, money market mutual funds, and small time deposits
• currency, savings deposits, and small time deposits