Monetary Policy: The Federal Reserve

Question 1

Which best describes a way in which the government might respond to rising threats to national security through fiscal policy?

Revolt · Accepted Answer

increasing military spending

Question 2

In addition to raising money, the government imposes excise taxes to

Revolt · Accepted Answer

discourage the use of specific products.

Question 3

What is a difference between payroll and income taxes?

Revolt · Accepted Answer

Payroll taxes are itemized deductions from an individual’s paycheck, while income taxes are based on an individual’s salary.

Question 4

Money spent on government programs is referred to as

Revolt · Accepted Answer

an expenditure.

Question 5

When might workers be exempt from paying income taxes?

Revolt · Accepted Answer

when they don’t earn enough money

Question 6

What gives Congress the power to raise taxes to fund services?

Revolt · Accepted Answer

the Constitution

Question 7

Examine the pie chart.

Revolt · Accepted Answer

Social Security and Education/Health and Human Services

Question 8

Based on the taxing and spending cycle, how will changing expenditures affect taxes collected by the government?

Revolt · Accepted Answer

Spending less will reduce services, leading to a reduction in tax revenue for the government.

Question 9

Look at a portion of a sample paycheck:

Revolt · Accepted Answer

payroll

Question 10

an excise taxan income taxa tariff

Revolt · Accepted Answer

a tariff

Monetary Policy: The Federal Reserve Answers