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