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Monetary And Fiscal Policy Quiz 15 (30 MCQs)

Quiz Instructions

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1. What does VAT stand for?
2. During inflation, Congress should ..... taxes and ..... spending
3. The fiscal year for the federal government ends on
4. Disadvantages include double taxation and more government regulation
5. Decrease Money Supply
6. "In February, lawmakers set themselves up to reach a more permanent spending agreement by the end of March. Congress agreed to increases to domestic and defense spending over the next two years, raising funding for domestic programs by $ 128 billion and hiking defense budgets by $ 160 billion. But they didn't actually decide where the money would go."
7. This the buying and selling of bonds by the FOMC (Federal Reserve)
8. Monetary Policy that is financed by selling government bonds is most likely to:
9. Which are examples of automatic stabilizers
10. Which of the following will result when the Federal Reserve increases the reserve requirement?
11. Which item in the federal budget is considered an uncontrollable?
12. The interest rate the FED charges banks to borrow money will be lowered to help the economy grow and raised to slow the economy
13. The Federal Reserve has how many district banks?
14. There are ..... Federal Reserve Districts.
15. What is an appropriate fiscal policy action to fight a recession?
16. A plan to reduce aggregate demand and slow the economy through taxing and spending
17. Contractionary or Tight Monetary Policy consist of
18. 1/RRR is the equation for:
19. How are fiscal and monetary policies similar?
20. The bad weather affect the farmer's crop.
21. Sales taxes are an example of
22. The Fed wants to encourage people to stop saving money and start spending. What type of policy is this? What action might they take regarding the Required Reserve, Discount Rate and/or bonds?
23. Programs like defense spending and medicaid that the government chooses to spend our tax dollars on is known as
24. Expansionary monetary policy will increase both output (real GDP) and price level.
25. Receiving a welfare check
26. Unemployment benefits, income tax structures, and social security payments are discretionary fiscal policies
27. The Federal Reserve Chairperson is .....
28. Use the passage to answer the following question. Everyone in Bananatown loves bananas! In fact, sometimes they are willing to take them as a form of payment for goods and services instead of dollars. Bill, a tourist, sees an opportunity to make some money due to 8 bananas being worth $ 2. He buys all of the bananas in Bananatown and goes home. He stores them in the trunk of his car for 6 months. Bill then goes back to Bananatown, knowing that the people there will be excited to purchase bananas from him. He opens his trunk and realizes that this plan was not well thought out, as all the bananas are rotten. How are bananas used as a form of money in Bananatown?
29. Which of the following people were proponents of Demand-side economics
30. When income increases, the tax rate increases is an example of .....
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