Unit Five Lesson Fourteen Economics

The possible effect of increased government borrowing on businesses and consumers; by driving interest rates up, high levels of government borrowing may crowd private borrowers out of the lending market

• Deficit spending

• Crowding-out effect

• Multiplier effect

• Stagflation

Government spending in excess of what is collected in revenues

• Deficit spending

• Stagflation

• Tight-money policy

• Fiscal policy

A monetary policy designed to accelerate the rate of growth of the money supply in order to stimulate economic growth

• Fiscal policy

• Easy-money policy

• Tight-money policy

• Stagflation

Government policy regarding taxing and spending

• Monetary policy

• Stagflation

• Fiscal policy

• Crowding-out effect

Central bank policy aimed at regulating the amount of money in circulation

• Stagflation

• Monetary policy

• Multiplier effect

• Fiscal policy

A ripple effect in which a change in spending by one person or business leads to additional changes in spending by another person or business

• Tight-money policy

• Multiplier efferct

• Stagflation

• Deficit spending

A combination of economic stagnation—or slowdown—and high inflation; features of stagflation include slow or zero economic growth, high unemployment, and rising prices

• Fiscal policy

• Tight-money policy

• Stagflation

• Deficit spending

A monetary policy designed to slow the rate of growth of the money supply in order to reduce inflation

• Crowding-out effect

• Easy-money policy

• Tight-money policy

• Deficit spending

Which of the following would stimulate the economy?

• Interest rates rise

• Decrease taxes

• Raise taxes

• Government pulls back on spending

The headline below indicates which type of policy:

"Fed unleashes another big rate hike in bid to curb inflation"

• Corporate policy

• Monetary policy

• Fiscal policy

• Government policy