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Fiscal Policy - Red Light Green Light Flashcards | StudBud
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Fiscal Policy - Red Light Green Light
Fiscal Policy - Red Light Green Light
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1
What are the 2 tools used in Fiscal Policy
Control Gov. Spending and Bond Sales
Control the National Debt
Control Taxing and Interest Rates
Control Taxing and Gov. Spending
2
The Stock Market has went up 3,000 points in 2 months. The GDP increased by 3%. What could you do?
Build a wall between Mexico and the US
Increase the enviromental regulations on businesses.
Increase the number of Federal Scholarships to college
Build 3 new interstate highways
3
Businesses are prospering and consumer spending is up. You’re a House Rep. What Fiscal Policy could you use?
Increase federal income taxes
Increase government defense spending
Lower Interest Rates so people buy more homes & cars
4
Decrease spending; increase taxes
Contractionary Policy
Monetary Policy
Expansionary Policy
Fiscal Policy
5
What should the Government do? The GDP is slowing down and the inflation rate is staying the same.
Expansionary Policy
Contractionary Policy
6
What should the Government do? The economy is doing great, but there is high inflation.
Expansionary Policy
Contractionary Policy
7
Inflation & GDP are going down. You’re a Congressional Rep. What Fiscal Policy Tool could you use?
Increase government defense spending
Lower Interest Rates so people buy more homes & cars
Increase taxes on the Rich
Increase federal income taxes
8
What should the Government do? The Unemplyment rate increased from 4% to 8%.
Expansionary Policy
Contractionary Policy
9
Unemployment is at an all-time low. You’re a Congressional Rep. What Fiscal Policy Tool could you use?
Decrease Income Taxes
Increase federal corporation taxes
Sell Bonds so the government has more money
Decrease government defense spending
10
Decrease taxes; Increase Spending
Contractionary Policy
Monetary Policy
Expansionary Policy
Fiscal Policy
11
What should the Government do? The GDP is growing fast and the unemplyment rate is rapidly decreasing.
Contractionary Policy
Expansionary Policy
12
GDP is increasing and there is Low Unemplyment. What is most likely happening?
The Economy reached a peak
Fiscal Policy
The Economy is Contracting
The Economy is Expanding
13
The use of government spending and revenue collection to influence the economy is ......?
Contractionary Policy
Monetary Policy
Fiscal Policy
Expansionary Policy
14
Businesses are closing, consumer spending is low. You’re a House Rep. What Fiscal Policy Tool could you use?
Decrease Taxes on the Rich
Stop the Bridge
Increase Taxes on the poor
15
You are a Senator. You vote to decrease spending.What fiscal policy are you pursuing
Expansionary
Contractionary
16
The housing market crashed, and people are not eating out in resturants nearly as much. What could you do?
Require Banks to make less loans
Create a national sales tax
Stop the National Space Program
Replace many interstate bridges in the US
