Economics Unit 5

Who primarily uses our tax money? (hint: choose 2 correct answers)

• Your employer

• The state government

• The Federal government

• Local Businesses

Required charges of citizens by local, state, and federal governments are called:

• charges
• taxes
• fees
• paycheck deductions

The government does not have the right to force taxpayers to pay tax.

• true

• false

Taxpayers are expected to accurately report all income.

• true

• false

Who has the power to levy taxes?

• Congress

• the President

• the Supreme Court

• the Internal Revenue Service

a rise in the cost of goods and services

• inflation
• discount rate
• interest
• monetary policy

Fee charged by the Federal Reserve Bank for other member banks to borrow money from the FED through the discount window?

• inflation

• interest

• discount rate

• reserve requirement

The goal of monetary policy is to

• sell bonds

• reduce unemployment

• prevent inflationary and recessionary economic periods

• increase tariffs on foreign countries

"The Fed" refers to the....

• Federal Bureau of Investigation

• Federal Government

• Federal Reserve System/Bank

• Federal Income Tax

The federal government is attempting to encourage spending by consume rs and businesses, a fiscal policy BEST serving this purpose would be

• decreasing taxes
• decreasing government spending
• reducing the investment tax credit
• balancing the budget