Unit Five Lesson Fourteen Economics

Front

The possible effect of increased government borrowing on businesses and consumers; by driving interest rates up, high levels of government borrowing may crowd private borrowers out of the lending market

Back

Crowding-out effect

Front

Government spending in excess of what is collected in revenues

Back

Deficit spending

Front

A monetary policy designed to accelerate the rate of growth of the money supply in order to stimulate economic growth

Back

Easy-money policy

Front

Government policy regarding taxing and spending

Back

Fiscal policy

Front

Central bank policy aimed at regulating the amount of money in circulation

Back

Monetary policy

Front

A ripple effect in which a change in spending by one person or business leads to additional changes in spending by another person or business

Back

Multiplier effect

Front

A combination of economic stagnation—or slowdown—and high inflation; features of stagflation include slow or zero economic growth, high unemployment, and rising prices

Back

Stagflation

Front

A monetary policy designed to slow the rate of growth of the money supply in order to reduce inflation

Back

Tight-money policy

Front

Which of the following would stimulate the economy? Interest rates rise, Decrease taxes, Raise taxes, Government pulls back on spending

Back

Decrease taxes

Front

The headline below indicates which type of policy:
"Fed unleashes another big rate hike in bid to curb inflation"

Back

Monetary policy