Economic Policy

Front

If government statistics show rising unemployment and a falling Consumer Price Index, which of these actions should the Federal Reserve take to help the economy? Options: increase government spending, decrease interest rates, increase the reserve requirements for banks, decrease tariffs placed on imported products

Back

decrease interest rates

Front

Which of these is a goal of the United States government in stabilizing the economy? Options:

to increase the national debt,

to decrease the unemployment rate,

to increase the Consumer Price Index (CPI),

to decrease the Gross Domestic Product (GDP)

Back

to decrease the unemployment rate

Front

Which of these is an example of government fiscal policy? Options: creating budgets, adjusting the discount rate, conducting open-market operations, changing the reserve requirement

Back

creating budgets

Front

Which of these is a characteristic of an economic downturn? Options: increased employment levels, increased consumer spending, decreased government regulations, decreased production of goods and services.

Back

decreased production of goods and services.

Front

Study the political cartoon. What rates are being cut as shown in the political cartoon?

Back

Interest

Front

Student the graph. Which of these best characterizes the condition of the economy between 1975 and 1978? A rapidly rising unemployment rate, Increased economic growth, A constant inflation rate, Steady interest rates

Back

Increased economic growth

Front

Which of these is a responsibility of the Federal Reserve System? Options: collecting taxes, lending money to individuals, controlling the money supply, approving budgets

Back

controlling the money supply

Front

Which of these economic indicators would be most useful for determining the rate of inflation? Options: the prime interest rate, the unemployment rate, The Consumer Price Index (CPI), Gross Domestic Product

Back

The Consumer Price Index (CPI)

Front

Which of the following are responsible for making fiscal policy decision? The President and Congress, The Federal Reserve System, The National Council of Economic Advisors, The commerce Department

Back

The President and Congress

Front

If the unemployment rate is rising and GDP is falling, what fiscal policy action should the federal government MOST likely follow? Options: decreasing taxes, decreasing spending, decreasing the money supply, decreasing the reserve requirement.

Back

decreasing taxes.