Fiscal Policy in Government & the Economy: Tutoring Solution Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. The Federal Reserve has noticed that expenditures are decreasing and that the number of loans requested has decreased significantly. What will they aim to do to increase the number of loan requests?

Question 2 2. All of the following are ways that the Federal Reserve can affect the money supply except _____.

Question 3 3. For three quarters in a row, economic growth increased by 3%, 5% and 7%. As it was close to the election, the government did not try to stabilize the growth. In the last quarter of the year, the economy drastically fell by 5%. Which of the following best describes such an occurrence?

Question 4 4. Which of the following are the two phases and the two turning points of the business cycle?

Question 5 5. _____ reduce the amount of taxable income a business has to report.

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Question 6 6. In which of the following scenarios would it be a good idea for the government to implement a deflationary fiscal policy?

Question 7 7. All of the following laws were meant to protect workers except

Question 8 8. What happens to economic output as measured by GDP during a recession?

Question 9 9. Sunshine Solar receives a $2,000 reduction on its federal taxes for each solar-energy installation it performs. This is an example of a _____.

Question 10 10. Overregulation is usually a result of the government wishing to promote _____.

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Question 11 11. All of the following are ways that the U.S. government promotes the economic interests of businesses, EXCEPT:

Question 12 12. Jane is a presidential adviser in the time of the 2008 Global Economic Crisis. The president is asking her if he should use fiscal policy in an attempt to combat the effects of the crisis. Why does she likely tell him yes?

Question 13 13. The Federal Reserve controls the growth rate of the money supply through _____.

Question 14 14. What happens to real GDP, prices and unemployment at the peak of a business cycle?

Question 15 15. The government's restriction and control over business practices is called _____.

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Question 16 16. How would the Federal Reserve implement an expansionary monetary policy?

Question 17 17. According to this chart, what was the unemployment rate during the peak of the business cycle?

Question 18 18. If the government wants to pull the country out of a period of heavy recession they should do all of the following EXCEPT:

Question 19 19. Which of the following is NOT true about how the government protects the U.S. economy?

Question 20 20. Which of the following is an example of an equity goal?

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Question 21 21. Which of the following is an example of an efficiency goal?

Question 22 22. What is a government MOST likely to do to protect the interests of agricultural businesses?

Question 23 23. The rate banks pay to borrow money from the Fed is called the _____ rate.

Question 24 24. Which of the following should the government use when it wants to increase demand for goods?

Question 25 25. The method of affecting the money supply that is used the least by the Fed is

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Question 26 26. Economists recognize that the economy doesn't grow smoothly, but in regular patterns. Which of these terms best describes this?

Question 27 27. You are an adviser to the Federal Reserve. Select which of the following is a goal that monetary policy should NOT strive towards nor have influence over?

Question 28 28. In general, which of the following is NOT correct concerning how politics and regulation intersect?

Question 29 29. Which of the following is NOT a goal of the U.S. government that can be accomplished by fiscal policy?

Question 30 30. The federal government's use of taxation and spending policies to affect overall business activity is called _____.

Fiscal Policy in Government & the Economy: Tutoring Solution Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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