Government & the Economy

In the United States, what does the government collect from consumers in order to

pay for public services?

• Goods

• Interest

• Human Resources

• Taxes

This headline describes a case involving —

• civil rights

• property rights

• employee rights

• consumer rights

One goal of the Federal Reserve System is to —

• set the tax rate

• provide tax money to the government

• keep the economy stable

• maintain high interest rates

Which is the best action the government can take to increase the amount of funds

available for businesses?

• Borrow money

• Lower taxes

• Balance the budget

• Reduce consumer demand

"The Fed" refers to the....

• Federal Bureau of Investigation
• Federal Government
• Federal Reserve System
• Federal Income Tax

Influencing the economy by changing the reserve requirement is called:

• Fiscal policy
• Monetary policy
• Tight Money
• Easy Money

The primary role of the Federal Reserve Bank is to steer the economy by

• controlling the budget
• setting spending levels.
• controlling the money supply.
• loaning out money.

The federal government's overall approach to spending and taxes is called

• Physical Policy

• Fiscal Policy

• Foreign Policy

• Monetary Policy

"The Fed refers to the Federal Reserve System, which is the Central Bank of the United States. The FOMC is the Federal Open Market Committee, the group responsible for implementing ____________."

• Fiscal policy

• Monetary policy

"In February, lawmakers set themselves up to reach a more permanent spending agreement by the end of March. Congress agreed to increases to domestic and defense spending over the next two years, raising funding for domestic programs by $128 billion and hiking defense budgets by $160 billion. But they didn’t actually decide where the money would go."

• Fiscal policy

• Monetary policy