Monetary & Fiscal PolicyVersión en línea Test your knowledge about monetary and fiscal policy! por sarah ayyad 1 Increasing taxes to reduce government debt is an example of contractionary fiscal policy. Yes No 2 Tightening monetary policy can help control inflation. Yes No 3 Tightening monetary policy can help stimulate economic growth. Yes No 4 Monetary policy refers to the actions taken by the government to control the money supply and interest rates. Yes No 5 The government has no control over fiscal policy. Yes No 6 The Federal Reserve is responsible for implementing monetary policy in the United States. Yes No 7 Increasing government spending during a recession is an example of contractionary fiscal policy. Yes No 8 Fiscal policy refers to the use of government spending and taxation to influence the economy. Yes No 9 Increasing government spending during a recession is an example of expansionary fiscal policy. Yes No 10 The European Central Bank is responsible for implementing fiscal policy in the Eurozone. Yes No 11 Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates. Yes No 12 The Federal Reserve is responsible for implementing fiscal policy in the United States. Yes No 13 Lowering interest rates is an example of expansionary monetary policy. Yes No 14 Increasing taxes to reduce government debt is an example of expansionary fiscal policy. Yes No 15 The European Central Bank is responsible for implementing monetary policy in the Eurozone. Yes No 16 Fiscal policy refers to the use of government spending and taxation to influence foreign policy. Yes No 17 Lowering interest rates is an example of contractionary monetary policy. Yes No 18 Monetary and fiscal policy have no impact on the economy. Yes No 19 The government can use fiscal policy to stimulate economic growth. Yes No 20 Monetary and fiscal policy are both tools used to stabilize the economy. Yes No
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