Federal Government Fiscal & Monetary Policies

What is the main idea of the federal government’s use of fiscal policy?

• To control population growth

• To maintain economic stability and foster growth

• To regulate international trade

• To manage natural resources

What is a potential outcome of regulatory actions by the government?

• No economic impact

• Only positive outcomes

• Economic costs and benefits

• Only negative outcomes

What is fiscal policy primarily concerned with?

• Government's decisions about taxes and spending

• Government's decisions about education and healthcare

• Government's decisions about foreign policy

• Government's decisions about environmental regulations

Which action is taken to slow economic growth?

• Decreased government spending

• Increased government spending

• Reduced taxes

• Increased healthcare funding

Which action is taken to encourage economic growth according to fiscal policy?

• Raise taxes

• Cut taxes

• Decrease infrastructure spending

• Tighten regulations

What is a fiscal policy strategy to slow down economic growth?

• Boost consumer demand

• Increase spending

• Decrease spending or tighten regulations

• Cut taxes

What is the purpose of increasing spending on infrastructure during economic growth?

• To decrease consumer demand

• To support struggling industries

• To raise taxes

• To tighten regulations

What is the primary purpose of federal regulations on businesses?

• To eliminate competition

• To promote fair competition and protect consumers

• To increase government revenue

• To reduce consumer choices

Which of the following statements is true about the impact of regulations on businesses?

• Regulations always increase profits

• Regulations can reduce corporate profits

• Regulations eliminate consumer protection

• Regulations have no effect on economic growth

What happens to interest rates when the Federal Reserve wants to slow economic growth?

• They are lowered

• They are increased

• They remain unchanged

• They are eliminated