The Ideal Quiz On Economy Ch 12 Review

9 Questions

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Economy Quizzes & Trivia

There are different things that affect the economy, as we know it. One thing that exists in almost every economy is debt; it is used as a source of capital for different investments. Take this ideal review quiz on economy chapter 12 and get to learn more about the facts about the economy.


Questions and Answers
  • 1. 
    The Council of Economic Advisers was established to give economic advice to Congress.
    • A. 

      True

    • B. 

      False

  • 2. 
    Discretionary fiscal policy is independent of Congress and left to the discretion of state and local governments.
    • A. 

      True

    • B. 

      False

  • 3. 
    Expansionary fiscal policy during a recession or depression will create a budget deficit or ass to an existing budget deficit.
    • A. 

      True

    • B. 

      False

  • 4. 
    To increase the initial consumption by a specific amount, government must reduce taxes by more than that amount because some of the tac cut will be saved by households.
    • A. 

      True

    • B. 

      False

  • 5. 
    A reduction in taxes and an increase in government spending would be characteristic of a contractionary fiscal policy.
    • A. 

      True

    • B. 

      False

  • 6. 
    Borrowing from the public is the way a budget surplus is financed.
    • A. 

      True

    • B. 

      False

  • 7. 
    The creation of new money is more expansionary than borrowing from the public as a way of financing deficit spending.
    • A. 

      True

    • B. 

      False

  • 8. 
    Using a budget surplus to pay off a large public debtmay reduce anti-inflationary impact of the surplus.
    • A. 

      True

    • B. 

      False

  • 9. 
    The impounding of a budget surplus means that it is used for tax cuts,
    • A. 

      True

    • B. 

      False