Unit Review: Monetary and Fiscal Policy

What is the primary purpose of taxes according to the government?

• To increase inflation

• To fund public services

• To reduce population

• To promote exports

Which term refers to the central banking system of the United States?

• Inflation

• Federal Reserve System (FED)

• Money Multiplier

• Fractional Banking

Which term describes a policy aimed at increasing economic growth?

• Contractory Economic Policy

• Expansionary Economic Policy

• Taxes

• Inflation

Which term refers to the increase in the general price level of goods and services?

• Taxes

• Inflation

• Money Multiplier

• Fractional Banking

Which economic policy is used to combat recession?

• Contractory Economic Policy

• Expansionary Economic Policy

• Inflation

• Taxes

Which type of tax is designed to be fair by taxing everyone at the same rate?

• Progressive Taxes

• Regressive Taxes

• Proportional Taxes

What is the purpose of a contractory economic policy?

• To increase inflation

• To decrease inflation

• To increase taxes

• To decrease taxes

Which term is used to describe the government's collection of revenue from its citizens?

• Inflation

• Taxes

• Money Multiplier

• Fractional Banking

What is the purpose of fiscal policy in general?

• To regulate international trade

• To control inflation and stabilize the economy

• To increase the population

• To promote technological innovation

What is a characteristic of regressive taxes?

• Higher income earners pay a higher percentage

• Lower income earners pay a higher percentage

• All income earners pay the same percentage

• Taxes are based on property value