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Fiscal Policy Quiz 1 (25 MCQs)

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1. Decrease gov spending

2. Who is in charge of managing fiscal policy?

3. What type of policy is the use of interest rates to control the economy?

4. Monetary policy decisions are decided by:

5. A budget deficit is likely to lead to

6. The largest portion of revenue for the Federal Government comes from

7. This is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As this rises, every dollar you own buys a smaller percentage of a good or service.

8. Regressive taxes

9. When interest rates rise, the number of loans made by banks will

10. An increase in interest rates, used to reduce overspending in the economy, is an example of

11. What would the political branches of government do to taxes during a period of high inflation?

12. Which component of the Federal Reserve System holds the most power in regards to day to day monetary policy?

13. If the SARB raises interest rates to combat rapid inflation, what might be a negative outcome?

14. Which of the following fiscal policy tools would decrease the national debt?

15. Which fiscal policy tool would be used if the economy were in a recession?

16. Money has to be accepted by everyone. Accepted means

17. If the Federal Reserve wants interest rates to increase, how does that affect the size of the money supply?

18. The following economic indicator gives the percentage of people who are looking for jobs but cannot find one.

19. Which economic theorist, the "Father of Modern Economics, " believes in using expansionary fiscal policy to battle recessionary periods?

20. The primary risk of expansionary fiscal policy is

21. Contractionary monetary policy is sometimes called

22. Which of the following would be an expansionary fiscal policy (increasing economic growth)?

23. How does someone become a member of the Board of Governors?

24. How does a government make money?

25. What is called when government spending is greater than the government revenue?

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Fiscal Policy Quiz 1 (25 MCQs)

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