U2D5- Fiscal Policy Exit Ticket

Which of the following is an example of expansionary fiscal policy?

• Increasing government spending

• Increasing interest rates

• Reducing government spending

• Raising taxes

How does the government control expansions in the economy?

• By increasing government spending

• By providing subsidies

• By decreasing taxes

• By increasing taxes

Which of the following is a potential consequence of contractionary fiscal policy?

• Increased unemployment

• Decreased inflation

• Higher consumer spending

• Lower interest rates

Which of the following is NOT a component of fiscal policy?

• Public works projects

• Government spending

• Taxation

• Interest rates

What effect does expansionary fiscal policy have on banks?

• Banks are less willing to make loans

• Banks are more willing to make loans

• Banks increase interest rates

• Banks decrease their reserves

Which of the following is a tool used in expansionary fiscal policy?

• Reducing public works projects

• Interest rate hikes

• Stimulus checks

• Tax increases