Who controls the money supply?
Congress
Wall Street
Local bankers.
The Federal Reserve Bank
What will happen to consumer spending if the Federal Reserve lowers the interest rate?
Spending will increase.
Spending will decrease.
Deflation
Inflation
What will happen if the government raises taxes?
Tax rates have no impact on spending.
Consumer spending will increase.
Consumer spending will decrease.
Interest rates will increase.
What will happen if the Federal Reserve increases the money supply?
Inflation
People's money will buy more goods.
Deflation
Interest rates will go up.
What happens when the Federal Reserve Bank prints more money?
Our money buys less.
Our money buys more.
What will happen if the government lowers taxes?
People will buy more goods.
People will buy fewer goods.
Increasing the interest rate will encourage more people to borrow money.
True
False
People buy more homes when interest rates are...
High
Low
Which is NOT a tool used to influence the economy?
Fiscal Policy
Monetary Policy
Consumer Policy
When the government raises taxes to slow down the economy, they are using...
Monetary Policy
Fiscal Policy
When the Fed prints more money, the result is...
Deflation
Inflation
Expansionary Fiscal Policy
Contractionary Fiscal Policy
Who controls fiscal policy?
Congress
The Fed
Who controls monetary policy?
Congress
The Fed
