Macroeconomics: US Fiscal and Monetary Policy - US Fiscal and Monetary Policy

6 important questions on Macroeconomics: US Fiscal and Monetary Policy - US Fiscal and Monetary Policy

What are the gov't source of income?

  1. Tax Revenue
  2. Federal Expenditures

True or False. During times of recession, the gov't conducts discretionary fiscal policy or ad hoc actions i.e. Increase spending and decreases taxes.

True

Why is your checking account known as a demand deposit?

Because you can access it on demand (check or debit card)
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What the Feds monetary policy goals are?

  1. Moderating long term interest rates
  2. Maximizing employment
  3. Promoting price stability

True or False. Deflation occurs when the output grows faster than the money supply.

True

True or False. Increasing the RRR, Required Reserved Ratio  would decrease the money supply and would increase the interest rate.

True

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