For Fiscal Policymakers, One of the Results of an Independent

question 16

Multiple Choice

For fiscal policymakers, one of the results of an independent central bank is:

• A) to finance government spending the Treasury has to order more currency from the central bank.
• B) fiscal policymakers always have to borrow to increase spending.
• C) fiscal policymakers cannot borrow unless the Federal Reserve prints more money.
• D) increased government spending has to be financed with either higher taxes or increased government borrowing.

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Definitions:

Family Size

The number of individuals in a household related by blood, marriage, or adoption.

Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country, helping to identify individuals and households in need.

Poverty Thresholds

The minimum income levels set by a government that determine who is considered to be living in poverty.

U.S. Bureau of the Census

A principal agency of the U.S. Federal Statistical System, responsible for producing data about the American people and economy.