Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
Who is responsible for setting fiscal policy in the United States?
Who is responsible for setting fiscal policy in the United States?
- The Federal Reserve
- The Congress (correct)
- The U.S. Treasury Department
- The President
What is the main focus of fiscal policy?
What is the main focus of fiscal policy?
- Raising revenue through taxation (correct)
- Managing government's debt
- Directly controlling interest rates
- Controlling the money supply
How does the government cover a federal deficit?
How does the government cover a federal deficit?
- Increasing tax rates on individuals
- Selling interest-bearing securities to investors (correct)
- Issuing non-interest-bearing securities
- Reducing government spending on infrastructure
Which department manages the government's finances and carries out fiscal policy?
Which department manages the government's finances and carries out fiscal policy?
Signup and view all the answers
What is a major cost of borrowing money?
What is a major cost of borrowing money?
Signup and view all the answers
How does the federal government influence the cost of borrowing mortgage funds?
How does the federal government influence the cost of borrowing mortgage funds?
Signup and view all the answers
What characterizes fiscal policy?
What characterizes fiscal policy?
Signup and view all the answers
In what way does the government manage a federal deficit?
In what way does the government manage a federal deficit?
Signup and view all the answers
What is the role of the Federal Reserve system in relation to monetary policy?
What is the role of the Federal Reserve system in relation to monetary policy?
Signup and view all the answers
How does the government fund a shortfall when it spends more than it collects?
How does the government fund a shortfall when it spends more than it collects?
Signup and view all the answers
Flashcards are hidden until you start studying
