#1
Which government body in the United States is responsible for fiscal policy?
Federal Reserve
Department of the Treasury
Securities and Exchange Commission
Internal Revenue Service
#2
Which economic indicator is often used to assess the overall health of the U.S. economy?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Producer Price Index (PPI)
Retail Sales
#3
Which branch of the U.S. government has the constitutional authority to levy taxes and allocate government spending?
Executive branch
Legislative branch
Judicial branch
Federal Reserve
#4
What is the purpose of the Social Security Trust Fund in the United States?
To fund military operations
To provide healthcare for the elderly
To fund Social Security benefits
To support education programs
#5
What is the primary tool used by the government to implement fiscal policy?
Interest rates
Taxation
Monetary policy
Foreign exchange interventions
#6
In the context of fiscal policy, what does a 'budget surplus' mean?
Government spending exceeds revenue
Government revenue exceeds spending
No deficit or surplus, balanced budget
Government debt decreases
#7
What is the purpose of the Congressional Budget Office (CBO) in the U.S. government?
Enforcing tax regulations
Developing monetary policy
Analyzing budgetary and economic issues
Conducting foreign affairs
#8
During an economic recession, which fiscal policy measure is often used to stimulate the economy?
Decreasing government spending
Raising taxes
Increasing government spending
Reducing interest rates
#9
What is the main difference between fiscal policy and monetary policy?
Fiscal policy involves government spending, while monetary policy involves interest rates.
Monetary policy involves government spending, while fiscal policy involves interest rates.
Both fiscal and monetary policies focus on government spending.
Both fiscal and monetary policies focus on interest rates.
#10
Which of the following is a form of automatic fiscal policy stabilizer?
Discretionary spending
Unemployment benefits
Corporate tax cuts
Infrastructure projects
#11
What is the debt ceiling in the context of the United States government finance?
Maximum limit on government spending
Maximum limit on government debt
Minimum limit on tax revenue
Minimum limit on budget surplus
#12
What is the relationship between the federal funds rate and fiscal policy?
Federal funds rate is a fiscal policy tool
Federal funds rate is an automatic stabilizer
Federal funds rate is a monetary policy tool
Federal funds rate is an unemployment benefit
#13
In the U.S., what role does the Office of Management and Budget (OMB) play in the budget process?
Advising on monetary policy
Preparing the federal budget
Overseeing international trade agreements
Regulating financial institutions
#14
During an economic boom, what fiscal policy measure is often implemented to cool down the economy?
Decreasing government spending
Raising taxes
Increasing government spending
Reducing interest rates