The Ideal Quiz On Economy Ch 12 Review

9 Questions | By Ecofanics | Last updated: Dec 7, 2018 | Total Attempts: 1284

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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