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$$Fiscal and Monetary Policy$$
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In an expansionary Monetary Policy, which is NOT a tool to increase money supply?
 
Sell bonds
 
Buy bonds
 
Decrease the Discount Rate
 
Decrease the Reserve Requirement
The economy has slowed over the last three months. Which policy should the government use?
 
Expansionary Fiscal Policy
 
Contractionary Fiscal Policy
 
Expansionary Monetary Policy
 
Contractionary Monetary Policy
The rate of inflation has increased by 6%. Which policy should the Federal Reserve use?
 
Contractionary Monetary Policy
 
Expansionary Monetary Policy
 
Contractionary Fiscal Policy
 
Expansionary Fiscal Policy
A slowdown in the nation's economy
 
Recession
 
Inflation
 
Open Market Operations
 
Monetary Policy
Buying and selling government securities to change the supply of money
 
Open Market Operations
 
Reserve Requirements
 
Discount Rae
 
Recession
A Increase in government spending or an decrease in taxes
 
Expansionary Fiscal Policy
 
Contractionary Fiscal Policy
 
Contractionary Monetary Policy
 
Expansionary Monetary Policy
A decrease in government spending or an increase in taxes
 
Contractionary Fiscal Policy
 
Expansionary Fiscal Policy
 
Contractionary Monetary Policy
 
Expansionary Monetary Policy
Total Demand in the economy
 
Aggregate Demand
 
Discount Rate
 
Reserve Ratio
 
Open Market Operations
A general increase in prices and fall in the purchasing value of money
 
Inflation
 
Recession
 
Aggregate Demand
 
Fiscal Policy
To require banks to keep 10% of their deposits in a vault is what FED policy?
 
Reserve Requirement
 
Discount Rate
 
Open Market Operations
 
Regressive Tax
Government officials adopt an expansionary Fiscal policy. Which action would be consistent?
 
increase military spending
 
selling government bonds
 
lowering interest rates
 
raise income taxes
Who controls monetary policy?
 
The Fed
 
Congress
Who controls fiscal policy?
 
Congress
 
The Fed
When the Fed prints more money, the result is...
 
Inflation
 
Deflation
 
Expansionary Fiscal Policy
 
Contractionary Fiscal Policy
When the government raises taxes to slow down the economy, they are using...
 
Fiscal Policy
 
Monetary Policy
Which is NOT a tool used to influence the economy?
 
Consumer Policy
 
Fiscal Policy
 
Monetary Policy
People buy more homes when interest rates are...
 
Low
 
High
Increasing the interest rate will encourage more people to borrow money.
 
False
 
True
What will happen if the government lowers taxes?
 
People will buy more goods.
 
People will buy fewer goods.
What happens when the Federal Reserve Bank prints more money?
 
Our money buys less.
 
Our money buys more.
What will happen if the Federal Reserve increases the money supply?
 
Inflation
 
Deflation
 
Interest rates will go up.
 
People's money will buy more goods.
What will happen if the government raises taxes?
 
Consumer spending will decrease.
 
Consumer spending will increase.
 
Interest rates will increase.
 
Tax rates have no impact on spending.
What will happen to consumer spending if the Federal Reserve lowers the interest rate?
 
Spending will increase.
 
Inflation
 
Deflation
 
Spending will decrease.
Who controls the money supply?
 
The Federal Reserve Bank
 
Local bankers.
 
Congress
 
Wall Street