Team 1
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Team 2
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Teams
Name
Score
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lifesaver
Give 20 points!
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magnet
Take 15 points!
Okay!
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rocket
Go to first place!
Okay!
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baam
Lose 25 points!
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15
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What will happen if the government raises taxes?
Interest rates will increase.
Consumer spending will decrease.
Consumer spending will increase.
Tax rates have no impact on spending.
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15
×
What will happen if the Federal Reserve increases the money supply?
Deflation
Inflation
People's money will buy more goods.
Interest rates will go up.
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15
×
A general increase in prices and fall in the purchasing value of money
Inflation
Aggregate Demand
Fiscal Policy
Recession
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×
boom
Lose 50 points!
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magnet
Take 10 points!
Okay!
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shark
Other team loses 25 points!
Okay!
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thief
Give points!
5
10
15
20
25
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lifesaver
Give 25 points!
Oops!
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gold
Win 50 points!
Okay!
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fairy
Take points!
5
10
15
20
25
×
lifesaver
Give 10 points!
Oops!
15
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When the government raises taxes to slow down the economy, they are using...
Fiscal Policy
Monetary Policy
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15
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Government officials adopt an expansionary Fiscal policy. Which action would be consistent?
selling government bonds
lowering interest rates
raise income taxes
increase military spending
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15
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In an expansionary Monetary Policy, which is NOT a tool to increase money supply?
Decrease the Discount Rate
Decrease the Reserve Requirement
Buy bonds
Sell bonds
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15
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Who controls monetary policy?
Congress
The Fed
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15
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A Increase in government spending or an decrease in taxes
Contractionary Fiscal Policy
Expansionary Monetary Policy
Expansionary Fiscal Policy
Contractionary Monetary Policy
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15
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Buying and selling government securities to change the supply of money
Open Market Operations
Recession
Discount Rae
Reserve Requirements
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15
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What will happen to consumer spending if the Federal Reserve lowers the interest rate?
Deflation
Inflation
Spending will increase.
Spending will decrease.
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15
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The rate of inflation has increased by 6%. Which policy should the Federal Reserve use?
Expansionary Monetary Policy
Expansionary Fiscal Policy
Contractionary Fiscal Policy
Contractionary Monetary Policy
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15
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What will happen if the government lowers taxes?
People will buy more goods.
People will buy fewer goods.
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15
×
What happens when the Federal Reserve Bank prints more money?
Our money buys less.
Our money buys more.
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