policy quiz Flashcards
1
Q
actions by Congress to stabilize the economy
A
fiscal policy
2
Q
actions by the federal reserve bank to stabilize the economy
A
monetary policy
3
Q
tools of fiscal policy:
A
- government spending
2. taxes
4
Q
what is fiscal policy?
A
GDP = C+I+G+ (X-M)
5
Q
what is monetary policy?
A
looking objectively and ways to stabilize the economy
6
Q
tools of monetary policy:
A
- open market operations
- discount rate
- reserve requirement
