Monetary and Fiscal Policy Review

On a scale of 1-10, how are you doing today?

1= Horrible

10 = Amazing

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Frankie is deciding between buying an iPhone 12 Pro ($999) and a Samsung Note 20 Ultra ($1,099). Which function of money allows him to understand and compare these prices?

• Medium of Exchange

• Standard of Value

• Store of Value

Veronica started working at QuikTrip when she was 16 and five years later she has saved over $10,000. Which function of money helps her do this?

• Medium of exchange

• Standard of Value

• Store of Value

Which of the following is NOT one of the goals of the Federal Reserve system?

• Full employment (Less than 5%)

• Low tax rates

• Long-lasting economic growth

• Stable prices for good and services

Congress and the President are responsible for implementing

• Monetary policy

• Fiscal policy

Olivia's coffee shop only accepts cash as payment. Which function of money does this represent?

• Medium of exchange

• Standard of Value

• Store of Value

When the Federal Reserve BUYS government bonds from banks it causes the money supply to ___________________.

• Increase

• Decrease

The purpose of tight/contractionary monetary policy is to _______________ the money supply.

• Increase

• Decrease

According to Keynesian Economics, which of the choices below is correct to reduce inflation?

• Decrease taxes, increase government spending

• Increase taxes, decrease government spending

When the Federal Reserve SELLS government bonds from banks it causes the money supply to ___________________.

• Increase

• Decrease