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