Question 29(1 point)Examine the following scenarios to see if the applied fiscal policy is economically appropriate.

The economy is currently in a recession and a congresswoman declares we need to cut or decrease government spending.

Question 29 options:

a.No, the government should lower interest rates.

b.No, the government should increase government spending.

c.Yes, this fiscal policy is economically appropriate.

d.No, the government should raise taxes.

Question 30(1 point)

Examine the following scenarios to see if the applied fiscal policy is economically appropriate.

The economy is experiencing inflation and our President wants to cut taxes.

Question 30 options:

a.No, the President should raise taxes or leave them alone.

b.Yes, this is economically appropriate.

c.No, the President should sell securities to constrict the money supply.

d.No, the President should increase government spending.

Question 31(1 point)

Examine the following scenarios to see if the applied fiscal policy is economically appropriate.

The economy is in a recession and a congressman suggests we should cut taxes and increase government spending

Question 31 options:

a.No, Congress should increase taxes and decrease government spending.

b.No, Congress should increase taxes and increase interest rates.

c.No, Congress should tell banks to increase their lending reserves.

d.Yes, this is economically appropriate.

Question 32(1 point)

Which of these is NOT a complication with fiscal policy?

Question 32 options:

a.Fiscal policy might not achieve its goals if households/firms expect a future reversal of policy

b.Political considerations might influence the government to implement policies that are not economically appropriate

c.Recognition lag, which means the difficulty of recognizing whether we are in a recession/inflation until we are already in it

d.Local states don't offset national fiscal policy because they can just follow along with the federal budget

Question 33(1 point)

Which of the following does NOT apply as a function of money?

Question 33 options:

a.Store of value

b.Checkable deposits

c.Unit of account

d.Medium of exchange

Question 34(1 point)

What "backs" our money?

Question 34 options:

a.Foreign currency

b.Our government's guarantee

c.Gold

d.Silver

Question 35(1 point)

Who implements monetary policy?

Question 35 options:

a.The government

b.Commercial banks

c.Credit unions

d.Federal Reserve

Question 36(1 point)

The Federal Reserve is dependent on the government and is influenced by political votes.

Question 36 options:

TrueFalse

Question 37(1 point)

What is monetary policy?

Question 37 options:

a.refers to deliberate change in the money supply and interest rates to improve economic health

b.refers to deliberate change in government spending and tax collections to improve economic health

c.refers to a natural, automatic occurrence of government influence to improve economic health

d.refers to government interference in the market to improve economic health