Name: __________________________________ Class: _____________ Date: _____________
Lesson Assessment: Fiscal Policy and Regulation
1. What is inflation?
a) an increasing money supply
b) a decreasing money supply
c) lowering of prices
d) rising of prices
2. Monetary policy is the practice of _________.
a) controlling the printing of money
b) changing the supply of money
c) establishing federal banks
d) managing the FDIC
3. Who makes federal monetary policies and decisions?
a) Federal Deposit Insurance Corporation
b) Federal Reserve System
c) the president
d) Congress
4. If the Fed wants to lower the discount rate, how would they do this?
a) They would decrease the money supply by buying government securities.
b) They would increase the money supply by selling government securities.
c) They would decrease the money supply by selling government securities.
d) They would increase the money supply by buying government securities.
5. Stagflation occurs when ________.
a) prices rise, unemployment is high, and production is stagnant
b) prices fall, production rises, and unemployment is stagnant
c) prices rise, unemployment falls, and production is stagnant
d) prices fall, unemployment falls, and production is stagnant
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Name: __________________________________ Class: _____________ Date: _____________
Lesson Assessment: Fiscal Policy and Regulation
6. What is the national debt?
a) the Social Security obligation of a budget deficit
b) average debt of households nationwide
c) a total of budget deficits over the years
d) the budget deficit for one year
7. Who bears the financial burden of a government bailout, such as the mortgage and auto
bailouts?
a) taxpayers
b) state governments
c) federal government
d) bailed out businesses
8. What positive outcome resulted from the government bailout of the mortgage and loan
industry?
a) assistance for those who lost their jobs
b) compensation for those who lost their homes
c) immediate financial security for the United States
d) privatization of the Fannie Mae and Freddie Mac mortgage institutions
9. Since 1970, how often has there been a federal deficit?
a) nearly half the time
b) most years
c) seldom
d) never
10. According to Keynesian theory, what position on debt should the government take during a
depression or economic downturn?
a) Retire the national debt.
b) Increase the national debt.
c) Reduce government spending.
d) Increase government revenues.
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Name: __________________________________ Class: _____________ Date: _____________
Lesson Assessment: Fiscal Policy and Regulation
ANSWER KEY
1. d 3. b 5. a 7. a 9. b
2. b 4. d 6. c 8. c 10. b
COMMON CORE STATE STANDARDS
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CCSS.ELA-Literacy.CCRA.R.1 Read closely to determine what the text says explicitly and
to make logical inferences from it; cite specific textual evidence when writing or speaking to
support conclusions drawn from the text.
CCSS.ELA-Literacy.CCRA.R.3 Analyze how and why individuals, events, and ideas
develop and interact over the course of a text
CCSS.ELA-Literacy.CCRA.R.4 Interpret words and phrases as they are used in a text,
including determining technical, connotative, and figurative meanings, and analyze how
specific word choices shape meaning or tone.
CCSS.ELA-Literacy.CCRA.R.7 Integrate and evaluate content presented in diverse formats
and media, including visually and quantitatively, as well as in words.
CCSS.ELA-Literacy.CCRA.R.8 Delineate and evaluate the argument and specific claims in
a text, including the validity of the reasoning as well as the relevance and sufficiency of the
evidence.
CCSS.ELA-Literacy.CCRA.R.10 Read and comprehend complex literary and
informational texts independently and proficiently.
CCSS.ELA-Literacy.RI.9-10.1 Cite strong and thorough evidence to support analysis of
what the text says explicitly as well as inferences drawn from the text.
CCSS.ELA-Literacy.RI.9-10.2 Determine a central idea of a text and analyze its
development over the course of the text, including how it emerges and is shaped and refined
by specific details; provide an objective summary of the text.
CCSS.ELA-Literacy.RI.9-10.3 Analyze how the author unfolds an analysis or series of
ideas or events, including the order in which the points are made, how they are introduced
and developed, and the connections that are drawn between them.
CCSS.ELA-Literacy.RI.9-10.4 Determine the meaning of words and phrases as they are
used in a text, including figurative, connotative, and technical meanings; analyze the
cumulative impact of specific word choices on meaning and tone (e.g., how the language of a
court opinion differs from that of a newspaper).
CCSS.ELA-Literacy.RI.9-10.8 Delineate and evaluate the argument and specific claims in a
text, assessing whether the reasoning is valid and the evidence is relevant and sufficient;
identify false statements and fallacious reasoning.
CCSS.ELA-Literacy.RI.9-10.10 By the end of grade 9, read and comprehend literary
nonfiction in the grades 9–10 text complexity band proficiently, with scaffolding as needed at
the high end of the range. By the end of grade 10, read and comprehend literary nonfiction at
the high end of the grades 9–10 text complexity band independently and proficiently.
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Name: __________________________________ Class: _____________ Date: _____________
Lesson Assessment: Fiscal Policy and Regulation
COMMON CORE STATE STANDARDS (CONTINUED)
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CCSS.ELA-Literacy.RI.11-12.1 Cite strong and thorough textual evidence to support
analysis of what the text says explicitly as well as inferences drawn from the text, including
determining where the text leaves matters uncertain.
CCSS.ELA-Literacy.RI.11-12.2 Determine two or more central ideas of a text and analyze
their development over the course of the text, including how they interact and build on one
another to provide a complex analysis; provide an objective summary of the text.
CCSS.ELA-Literacy.RI.11-12.3 Analyze a complex set of ideas or sequence of events and
explain how specific individuals, ideas, or events interact and develop over the course of the
text.
CCSS.ELA-Literacy.RI.11-12.4 Determine the meaning of words and phrases as they are
used in a text, including figurative, connotative, and technical meanings; analyze how an
author uses and refines the meaning of a key term or terms over the course of a text (e.g.,
how Madison defines faction in Federalist No. 10).
CCSS.ELA-Literacy.RI.11-12.7 Integrate and evaluate multiple sources of information
presented in different media or formats (e.g., visually, quantitatively) as well as in words in
order to address a question or solve a problem.
CCSS.ELA-Literacy.RI.11-12.10 By the end of grade 11, read and comprehend literary
nonfiction in the grades 11–CCR text complexity band proficiently, with scaffolding as
needed at the high end of the range. By the end of grade 12, read and comprehend literary
nonfiction at the high end of the grades 11–CCR text complexity band independently and
proficiently.
CCSS.ELA-Literacy.RH.9-10.3 Analyze in detail a series of events described in a text;
determine whether earlier events caused later ones or simply preceded them.
CCSS.ELA-Literacy.RH.9-10.4 Determine the meaning of words and phrases as they are
used in a text, including vocabulary describing political, social, or economic aspects of
history/social science.
CCSS.ELA-Literacy.RH.9-10.7 Integrate quantitative or technical analysis (e.g., charts,
research data) with qualitative analysis in print or digital text.
CCSS.ELA-Literacy.RH.9-10.8 Assess the extent to which the reasoning and evidence in a
text support the author’s claims.
CCSS.ELA-Literacy.RH.9-10.10 By the end of grade 10, read and comprehend
history/social studies texts in the grades 9–10 text complexity band independently and
proficiently.
CCSS.ELA-Literacy.RH.11-12.3 Evaluate various explanations for actions or events and
determine which explanation best accords with textual evidence, acknowledging where the
text leaves matters uncertain.
CCSS.ELA-Literacy.RH.11-12.4 Determine the meaning of words and phrases as they are
used in a text, including analyzing how an author uses and refines the meaning of a key term
over the course of a text (e.g., how Madison defines faction in Federalist No. 10).
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Name: __________________________________ Class: _____________ Date: _____________
Lesson Assessment: Fiscal Policy and Regulation
COMMON CORE STATE STANDARDS (CONTINUED)
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CCSS.ELA-Literacy.RH.11-12.7 Integrate and evaluate multiple sources of information
presented in diverse formats and media (e.g., visually, quantitatively, as well as in words) in
order to address a question or solve a problem.
CCSS.ELA-Literacy.RH.11-12.8 Assess the extent to which the reasoning and evidence in
a text support the author’s claims.
CCSS.ELA-Literacy.RH.11-12.10 By the end of grade 12, read and comprehend
history/social studies texts in the grades 11–CCR text complexity band independently and
proficiently.
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