CE 13

The Federal Reserve System keeps inflation low and stable by -

• regulating the amount of money in the economy
• regulating the tax rate
• promoting competition
• setting prices

Decreased government spending would result in -

• a higher reserve amount
• higher prices
• lower taxes
• a lower discount rate

The _ Amendment authorizes Congress to tax our incomes.

• 1st
• 5th
• 10th
• 16th

The largest source of revenue for the federal government is  __.

• borrowing
• charging fees
• sales tax
• income taxes

The government enforces antitrust legislation to promote __.

• monopolies
• competition
• private ownership
• global  trade

The United States has a __ economy.

• traditional
• mixed
• free market
• command

Which action will the government take when it needs more money?

• hold elections
• lower prices
• increase taxes
• hire workers

Why is a monopoly bad for an economy?

• It promotes cometition among businesses
• It lowers the cost of production
• It elimates competition
• It lowers consumer prices

What happens when the government lowers taxes?

• Fewer funds are available to spending
• Credit becomes much harder to obtain
• More funds are available for spending
• Businesses have a more difficult time finding loans

what is the name for the central bank of the United States

• the United Reserve
• the Federal Reserve
• Bank of America
• Union Bank