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