Monetary and Fiscal Policy

Front

If Congress increases government spending by the same amount it increases taxes, aggregate demand will

Back

increase

Front

Which of the following results should be included where the question mark appears in the illustration? Options: unemployment, inflation, consumer spending, production

Back

unemployment

Front

Which of the following results should be included where the question mark appears in the illustration? Options: the reserve requirement, interest rate, inflation, unemployment

Back

inflation

Front

Money loses its value when it: It becomes too plentiful, becomes too portable, is divisible, is durable

Back

becomes too plentiful

Front

What dollar amount should appear in place of the letter P in the table? Options: $1,000,000, $100,000, $1,900,000, $1,900

Back

$100,000

Front

What dollar amount should appear in place of the letter S in the table? Options: $200,000, $1,800,000, $2,200,000, $1,800

Back

$1,800,000

Front

What amount should replace the X in the table? Options: $1,000, $100,000, $1,000,000, $10,000

Back

$10,000

Front

What percentage should replace the Y in the table? Options: 20%, 5%, 10%
15%, 2%

Back

20%

Front

Which items on the graph are part of M1? Options: currency and savings deposits, currency, traveler’s checks plus demand deposits, and other checkable deposits, other checkable deposits, money market mutual funds, and small time deposits, currency, savings deposits, and small time deposits

Back

currency, traveler’s checks plus demand deposits, and other checkable deposits

Front

In order for money to have value, it must have all of the following characteristics EXCEPT: portability., durability., divisibility., plentiful availability.

Back

plentiful availability.