Ch 44: MTEL Business: Fiscal Policy & Monetary Policy in Macroeconomics

About This Chapter

Expand your understanding of important terms and tools in macroeconomics while preparing for the MTEL Business examination. Watch the tutorial video lessons in this chapter on fiscal and monetary policies. Brief quizzes and text transcripts are also included.

MTEL Business: Fiscal Policy and Monetary Policy in Macroeconomics - Chapter Summary

This chapter provides you with facts you'll need to know when sitting for the MTEL Business examination. Consult these animated video lessons on fiscal and monetary policies in macroeconomics in order to learn more about contractionary monetary policy, the process of purchasing and selling treasury bonds, the purpose of the Federal Reserve and the tools of fiscal policy. When you've watched the last lesson in the chapter, you might also be able to:

  • Understand the roles played by fiscal and monetary policy in managing the economy
  • Explain fiscal policy tools and their positive contributions to the economy
  • Discover how expansionary and contractionary fiscal policies can jumpstart or slow down aggregate demand
  • Discuss the functions of expansionary and contractionary monetary policies
  • Explain the ways in which monetary policy helps the economy

Comprised of animated video lessons, this chapter aims to provide you with the knowledge required to answer related questions on the MTEL Business examination. Utilize your mobile or wired technology to watch the video lessons online. Pause and reflect on the topics you've just explored, then restart the lessons at your convenience. Take the self-assessment quizzes when you're ready. It's also possible to print out the quiz results and learn on-the-go. Enrich your learning experience by asking questions of the experts and focusing on the written transcripts' bold terminology.

MTEL Business: Fiscal Policy and Monetary Policy in Macroeconomics Chapter Objectives

There will be 100 multiple-choice questions and two open-response questions to answer on the computerized MTEL Business examination. The second section of Subarea III - Economics has questions pertaining to monetary and fiscal policy. The Economics subarea's approximate test weighting is 11% and it has between 13 and 15 multiple-choice questions. You must be prepared to finish the whole examination within the four-hour time limit, and you'll need a minimum score of 240 to pass the assessment.

7 Lessons in Chapter 44: MTEL Business: Fiscal Policy & Monetary Policy in Macroeconomics
Test your knowledge with a 30-question chapter practice test
Managing the Economy with Fiscal and Monetary Policies

1. Managing the Economy with Fiscal and Monetary Policies

Learn what fiscal and monetary policy are and how they are used to manage the economy. Find out the goals of these policies and some of the tools that each use to help you find a job and influence the amount of money in your pocket.

Fiscal Policy Tools: Government Spending and Taxes

2. Fiscal Policy Tools: Government Spending and Taxes

Discover the three main tools the government uses to address recessionary and inflationary economies - what economists call fiscal policy. Find out how these tools are used to help the economy in different situations.

Expansionary Fiscal Policy and Aggregate Demand

3. Expansionary Fiscal Policy and Aggregate Demand

In the 21st century, the realities of a recessionary economy are more vivid than many of us would probably like. In this lesson, you'll learn how the government uses expansionary policy to offset recessionary gaps using real-world examples.

Contractionary Fiscal Policy and Aggregate Demand

4. Contractionary Fiscal Policy and Aggregate Demand

This lesson examines how fiscal authorities use contractionary fiscal policy to slow down the economy and defeat the enemy called inflation. Find out what fiscal tools the federal authorities can use to contract the economy.

Expansionary Monetary Policy: Helping the Economy Grow

5. Expansionary Monetary Policy: Helping the Economy Grow

In this lesson, you'll learn how the central bank helps the economy grow during recessions by increasing the size of the money supply. An overview of the three tools of monetary policy are included as well as the reasons why monetary policy leads to higher economic output.

Contractionary Monetary Policy: Slowing the Economy Down

6. Contractionary Monetary Policy: Slowing the Economy Down

In this lesson, you'll find out more about the central bank's efforts to deal with an overheating economy, what economists call 'contractionary monetary policy.'

Monetary Policy & The Federal Reserve System

7. Monetary Policy & The Federal Reserve System

This lesson covers the Federal Reserve System's use of monetary policy to help promote the economy. A short quiz will follow the lesson to check your understanding.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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Other Chapters

Other chapters within the MTEL Business (19): Practice & Study Guide course

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