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1. Which of the following pairs best fit with fiscal policy?

2. Who uses fiscal policy?

3. What is the primary purpose of taxation?

4. Which of the following is not a form of taxation?

5. Which of the following does not involve government spending?

6. Which of the following is the key to taxation?

7. Which of the following is the key to government spending?

8. What is the equation for output or national income?

9. What does the term C(Y - T) represent in the equation for output or national income?

10. What does expansionary fiscal policy do to output?

11. What does contractionary fiscal policy do to output?

12. What is the effect of expansionary fiscal policy on the money supply?

13. What is the effect of fiscal policy on the money supply?

14. What is the effect of stable fiscal policies on the money supply?

15. What is the effect of contractionary fiscal policy on the money supply?

16. The number that expresses the total effect a fiscal policy has on output is called a

17. What do you call the number that tells how much a change in tax policy affects total output?

18. What do you call the number that tells how much a change in government spending policy affects total output?

19. What is the basis of both the tax multiplier and the government spending multiplier?

20. What equation shows the total change in output resulting from a change in tax policy?

21. What equation shows the total change in output resulting from a change in government spending policy?

22. What is the total change in output if taxes are reduced by $10 million and the MPC is equal to 0.5?

23. What is the total change in output if taxes are reduced by $10 million and the MPC is equal to 0.8?

24. What is the total change in output if taxes are increased by $50 million and the MPC is 0.2?

25. What is the total change in output if taxes are increased by $100 million and the MPC is 0.9?

26. What is the total change in output if government spending is increased by $20 million and the MPC is 0.3?

27. What is the total change in output if government spending is increased by $50 million and the MPC is 0.8?

28. What is the total change in output if government spending is decreased by $10 million and the MPC is 0.1?

29. What is the total change in output if government spending is decreased by $70 million and the MPC is 0.9?

30. Which of the following does fiscal policy directly affect?

31. Which of the following is not affected by fiscal policy?

32. What is the effect of expansionary fiscal policy on the interest rate?

33. What is the effect of contractionary fiscal policy on the interest rate?

34. Which of the following is the best definition of the money supply?

35. Who carries out monetary policy?

36. What is it called when the Fed takes actions that result in an increase in the money supply?

37. What is it called when the Fed takes actions that result in a decrease in the money supply?

38. What is the effect of expansionary monetary policy on output?

39. What is the effect of contractionary monetary policy on output?

40. Which of the following is not a way that the Fed can affect the money supply?

41. What is the effect of the Fed selling government bonds on the open market?

42. What is the effect of the Fed purchasing government bonds on the open market?

43. How does expansionary monetary policy effect the interest rate?

44. How does contractionary monetary policy effect the interest rate?

45. Which of the following is not a form of expansionary monetary policy?

46. Which of the following is not a form of contractionary monetary policy?

47. Which of the following is an example of expansionary fiscal policy?

48. Which of the following is an example of contractionary fiscal policy?

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