| A | B |
|---|
| This uses taxes and government spending to affecting the economy. | Fiscal Policy |
| The rate of tax is the same for all taxpayers is what kind of tax structure? | Proportional |
| What is the type of spending that the government must authorize each year? | Discretionary Spending |
| Decreasing spending and/or raising taxes is what kind of fiscal policy? | Contractionary Fiscal Policy |
| Whose responsibility is it to appoint the board of directors for the Fed? | The President's |
| Buing bonds and securities on the open market increases the money supply and is what type of monetary policy? | Expansionary Monetary Policy |
| What are some limitations to fiscal policy? | Regional issues, policy lags, timing issues, rational expectations theories, or political issues. |
| What is the name of the bank that regulates monetary policy in the United States? | The Federal Reserve or Fed |
| These are features of fiscal policy that work automatically to steady the economy. | Automatic Stabilizers |
| What is an example of an automatic stabilizer. | Public Transfer Payments or The Prgressive Income Tax |
| The percent of income paid in taxes decreases as income rises is what type of tax structure? | Regressive |
| Sellin bonds on the open market, raising the reserve requirement, or increasing the discout rate are what type of monetary policy? | Contractionary Monetary Policy |
| Increasing government spending or reducing taxes is what kind of fiscal policy? | Expansionary Fiscal Policy |
| The primary job of monetary policy is to establish what? | Stable prices, money and credit |
| In what year was the Federal Reserve established? | 1913 |
| What accounts for the largest percentage of discretionary spending? | National Defense |
| What is monetary another word for? | Money |
| What major items are included under mandatory spending? | Social Security, Medicare, and Medicaid |
| How many Federal Reserve District Banks are there? | 12 |
| A tax rate that increases as a person's income increases is what type of tax structure? | Progressive |
