Posttest on Fiscal Policy

Click on the correct answer. A smiling face in the box means the answer is correct; an X means that it is incorrect.


1	Fiscal Policy is
		raising taxes by the government.
		policies adopted by the government to increase/decrease government spending and/or taxes.
		building a new stadium.
		purchasing a new fighter jet.


2	Expansionary Fiscal Policy is:
		raising taxes.
		raising taxes and cutting government spending.
		increases in government spending and/or lowering taxes.
		hot air from the White House.


3	The formula for the multiplier is:
		1/ MPC
		1/(1-MPC)
		MPC/1
		X TIMES 10.