Test
Fiscal and monetary policy practice
This classroom material allows 12th-grade students to practice understanding fiscal and monetary policies through multiple-choice and sequencing questions. Students analyze causes and effects related to taxes, spending, interest rates, and the Federal Reserve's tools.
By Edform · Economics and personal finance · Grade 12 · Published Oct 15, 2026 · New
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Questions
- Which of the following is an example of expansionary fiscal policy?
- Which of the following actions are tools of monetary policy used by the Federal Reserve?
- Place the steps in the correct order to show how the Federal Reserve increases the money supply.
- Fill in the blank with the correct term: The main goal of contractionary monetary policy is to reduce ___.
- Choose the correct answer from the dropdown: When the government lowers taxes, it is using (fiscal | monetary | trade) policy to try to (stimulate | slow | stabilize) the economy.
- Sort each action as either Fiscal Policy or Monetary Policy.
- Mark each statement as True or False.
- What is the likely effect of the Federal Reserve raising the federal funds rate?
- Match each policy tool to its description.
- If the government increases spending by $100 billion and the marginal propensity to consume (MPC) is 0.8, what is the total increase in GDP, assuming no crowding out? (Multiplier = 1/(1-MPC))
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