Fiscal and Monetary Policy review

Front

Which type of committee exists for a limited period of time in order to perform a specific job?

Back

select

Front

The Fed wants to fight inflation. What action should they take regarding the discount rate, the Reserve Requirement, or government securities?

Back

Adopt tight monetary policy & raise the rates

Front

The National level of the Federal Reserve consists of: Local Member banks, 12 National districts, Board of Governors, The President & The Senate

Back

Board of Governors

Front

Expectant parents buy supplies for the nursery. Would this be included in GDP?

Back

Yes - Consumer Spending

Front

If the economy is suffering from inflation, what fiscal policy measure could be taken to help alleviate the problem? Options: Increase money supply, Increase government spending, Increase taxes, Increase the reserve requirement

Back

Increase taxes

Front

When revenue is less than expenses it results in

Back

A budget deficit

Front

The purpose of expansionary fiscal policy is

Back

to increase the amount of output

Front

What is the point called where the supply curve and the demand curve intersect?

Back

Equilibrium Price

Front

The Federal Reserve

Back

Is made up of 12 district banks & member banks

Front

When the Fed buys securities, what effect does this have on GDP?

Back

Easy Monetary Policy, Increase