Unit 2 Quiz 3

Fiscal policy is the responsibility of ___.

Congress and the President

When Congress creates an act that affects fiscal policy, it is considered a(n) ________________ fiscal policy.

discretionary

A(n) _____ fiscal policy encourages economic growth through tax cuts, a decrease in industrial regulation, increased government spending, or a combination of factors.

expansionary

The Fed's move to put more money into circulation in response to the 1969 recession led to ______ during the 1970s and 1980s.

inflation

President Andrew Jackson wanted to get rid of the Bank of the United States because ___.

it was not answerable to the public and had become too powerful

A budget ______ is the economic condition that exists when the government takes in more taxes than they expend.

surplus

Which government move would be an example of automatic fiscal policy?

an increase in welfare spending because more people qualify for benefits

A recipe for fixing a budget deficit is for the government to __________.

cut expenditures

Which would be an example of contractionary fiscal policy?

decrease in government spending

The Federal Open Market Committee sets economic ______ that runs the economy.

policy

Which is NOT true of the Federal Reserve System?

It is responsible for the formulation of fiscal policy.

The Federal Reserve bank responsible for beginning all Fed policy is based out of ___.

New York

Congress and the President are responsible for passing a federal budget before ___ of each year.

October 1st

The _____ movement was instrumental in the creation of the Federal Reserve System.

Progressive

Which President was responsible for eliminating all connection between the dollar and gold?

Richard M. Nixon

According the chart, which of the following would NOT happen if the Fed were to buy securities?

The dollar gains strength against foreign currency.

Who was responsible for the creation of the Federal Reserve System?

Woodrow Wilson

A(n) _____ budget exists when government revenues and expenses are the same.

balanced

The federal _____ is an annual document created by Congress detailing government taxes and spending.

budget

Which answer is NOT an economic tool of the Federal Reserve?

budget line-item veto

The power of creating monetary policy is the power to ___.

regulate how much money is in circulation in order to influence the economy

During the 2008 financial crisis, the Fed reduced _____ requirements and lowered the discount rate to encourage growth.

reserve

If the Fed wanted to slow down inflation, it would ___.

sell securities in the open market

A(n) ___ is an increase of circulated money that is meant to stimulate economic growth.

stimulus

Which of these are the long-term effects of the total elimination of the gold standard?

the economy as a whole fluctuating much more unpredictably