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Mac11: Fiscal policy, tools, deficit spending, national debt

Last updated about 6 years ago

5 questions

1

1

1

1

1

Question 1

1.

Question 2

2.

Fiscal policy is conducted by what government agency?

Justice Department

Federal Reserve

Treasury Department

Congress

Question 3

3.

When the economy is in recession which combination of fiscal policy tools would be appropriate?

raise taxes and decrease government spending

Buy bonds/securities and lower taxes

lower taxes and increase government spending

Sell bonds/securities and raise the reserve requirement

Question 4

4.

When the federal government spends more than it receives in tax revenues for a given year, the result is called:

a Budget deficit

a Balanced budget

a Budget surplus

a Budget correction

Question 5

5.

An increase in budget deficits from year to year will cause the national debt to grow larger.

True

False

Which of the following tools are part of fiscal policy?

Open Market Operations

Government spending

Reserve requirement

Discount rate

Taxes

Interest on reserves