Who sets fiscal policy?   a. the U.S. Treasury and the U.S. Congress   b. Congress and the Federal Reserve   c. the U.S. Treasurey and the Federal Reserve   d. Congress and the President

The Federal Budget is divided into Mandatory and Discretionary spending.   Decide which statement is correct.  1. Social Security is mandatory and interest on national debt is mandatory 2. Military spending is mandatory and interest on national debt is mandatory 3.Interest on national debt is discretionary and Medicare is discretionary 4.Medicare is mandatory and military spending is discretionary.

“Counter-cyclical fiscal policy” intends to ... Group of answer choices a. Stop the business cycle b. Decrease government spending c. Make the highs of the business cycle higher, while making the lows less low d. Smooth out the business cycle

Which legislative action shifted the budget power from the executive branch to the legislative branch?  a. Budget and Accounting Act of 1921 b. Congressional Budget and Impoundment Control Act of 1974  c. Balanced Budget and Emergency Deficit Control Act of 1985  d. Budget Enforcement Act of 1990

Which of the following is NOT a component of federal fiscal policy?   A. Federal tax revenues   B. Federal government expenditures   C. Federal budget deficit   D. All of the above are components of federal fiscal policy

Problems with the federal government budget process include: a. budgeting that increases the flexibility of discretionary fiscal policy. b. most of the expenditures being for entitlement programs. c. budgeting that allows the President too much discretion in spending decisions. d. a budget outline that needs to be approved with at least a two-thirds majority vote. e. a brief budgeting that does not allow Congress to study whether the budget is an appropriate tool for fiscal policy.

QUESTION 32 The government can use in the form of O a contractionary fiscal policy, a decrease in government spending Ob. an expansionary fiscal policy, an increase in government spending C. an expansionary fiscal policy, an increase in corporate taxes da contractionary fiscal policy, a reduction in taxes to decrease the level of aggregate demand in the economy.

One criticism of the fiscal policy ineffectiveness is because: A.the velocity of money is predictable. B.it is dependent on Congress' approval. C.the crowding-out effect increases investment. D.prices and wages are sticky in the short run.

Identify each scenario as an example of expansionary fiscal policy, contractionary fiscal policy, or not an example of fiscal policy. a. An increase in the money supply is b. A decrease in taxes is fiscal policy. not an example of fiscal policy. a contractionary an expansionary d. An increase in tax rates is c. A decrease in the unemployment rate is fiscal policy. fiscal policy. f. A decrease in the money supply is e. A decrease in government spending is fiscal policy. fiscal policy. h. An increase in corporate bonds purchased is g. A decrease in transfer payments is fiscal policy. fiscal policy. i. An increase in government spending is fiscal policy.

What is a default on the national debt?   A. The Federal Reserve purchases Treasurys issued by the federal government. B. The federal government buys back its own debt from the holders of United States Treasuries by having the Treasury print money. C. The holders of United States Treasurys forgive the debt and provide the government with cash. D. The federal government declares bankruptcy or restructures the payments on its debts with the lenders.