Fiscal Policy
This is the group responsible for carrying out fiscal policy.
What is the government?
or What is the executive and Legislative branch of the government?
This is the organization responsible for carrying out Monetary Policy.
What is the Federal Reserve (The Fed)?
This type of policy, with either fiscal or monetary, is when the objective is to increase the size of the economy.
What is expansionary?
These are the two ways that fiscal policy can achieve its goals.
What is changing taxes and government spending?
This is the effect on the supply of money when contractionary monetary policy is undertaken.
What is a decrease in the supply of money?
This type of monetary policy is accomplished by selling bonds on the open market.
What is contractionary Monetary Policy?
This is when prices are rising faster than the buying power of the dollar/wages.
What is inflation?
These are two of the four of the Fed's responsibilities.
What are:
conducting monetary policy,
supervising and regulating banks,
maintaining the stability of the US financial system,
and providing financial services to the US government, US financial institutions, and foreign institutions?
This type of fiscal policy is accomplished by increasing government spending.
What is expansionary fiscal policy?
These are the three goals of Fiscal Policy.
What is full employment(will except maximum employment), economic growth, and stable prices (price stability)?
These are the three ways that monetary policy can be used to influence the money supply.
What are changing the reserve rate, open market purchases or sales, and changing the discount rate?
This type of policy can be identified by increasing taxes.
What is contractionary fiscal policy?
This type of fiscal policy is being carried out when people have more money to spend.
What is expansionary policy?
This is the change that the Fed would have to undertake if they want banks to increase the amount of money that they are holding in reserve.
What is increase the reserve rate.
This type of policy can be identified by increasing the reserve rate.
What is Expansionary Monetary Policy?