Monetary policy is controlled by the Federal Reserve. Fiscal policy is

What function of money is highlighted when Tsai pays her water bill with cash?

Suppose the marginal propensity to consume is equal to 0.4. If the government lowers tax rates and tax revenue falls by $50 billion, then disposable income will increase by________ billion and consumption spending will initially increase by ________ billion (before the multiplier effect kicks in).

Which of the following graphs illustrates what happens when the government enters the loanable funds market to borrow?

If a bank increases the amount of cash it has in its vault, its reserves would ________, liabilities would ________, and owner’s equity would ________.

Expansionary monetary policy occurs when

Suppose the marginal propensity to consume is equal to 0.4. If the government lowers tax rates and tax revenue falls by $50 billion, then disposable income will increase by________ billion and consumption spending will initially increase by ________ billion (before the multiplier effect kicks in).

When the government borrows, the ________ loanable funds shifts to the right, causing the interest rate to ________, which causes private investment to ________.

Mandatory outlays are different than discretionary outlays because

Quantitative easing is the