Reference no: EM132959081

Problem 1: The federal budget can affect the taxing and spending decisions of state and local governments.

True

False

Problem 2: According to Fisher, what is the primary factor driving the increase in 'welfare' spending at the state and local level?

a. Medicaid

b. cash assistance

c. unemployment benefits

d. b and c, but not a

e. none of the above

Problem 3: When the Federal Reserve seeks to slow inflation by changing interest rates and/or changing the proportion of deposits that banks must keep in reserve, the government is practicing

a. Fiscal policy

b. Monetary policy

c. Inflationary budget making

d. Political maneuvering

e. None of the above