2. Tax Deductions and Exclusions in Fiscal Policy
10 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

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?

  • 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?

  • 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?

    <p>U.S. Treasury Department</p> Signup and view all the answers

    What is a major cost of borrowing money?

    <p>Market interest rates</p> Signup and view all the answers

    How does the federal government influence the cost of borrowing mortgage funds?

    <p>Through both fiscal and monetary policies</p> Signup and view all the answers

    What characterizes fiscal policy?

    <p>Government actions in managing debt</p> Signup and view all the answers

    In what way does the government manage a federal deficit?

    <p>By issuing interest-bearing securities to cover shortfall</p> Signup and view all the answers

    What is the role of the Federal Reserve system in relation to monetary policy?

    <p>Controlling money supply and cost of money</p> Signup and view all the answers

    How does the government fund a shortfall when it spends more than it collects?

    <p>By selling interest-bearing securities to investors</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser