Unit 4 Public Policy

Front

One way the Federal Reserve can counter unemployment and stimulate spending is by —

Back

Decreasing the discount rate

Front

Inflation is a general decrease in price?

Back

False

Front

What is Commodity Money?

Back

A form of money which has intrinsic value, meaning it is worth something in its own right rather than simply being a token of financial value.

Front

Contractionary fiscal policies address inflationary economic problems and are intended to —

Back

decrease the amount of money in circulation

Front

Fiat money has value simply because the government says it does?

Back

TRUE

Front

One of the disadvantages of operating a barter system is that trading is -

Back

Limited by availability & demand

Front

The Federal Reserve System designed in the manner described above resulted in the creation of -

Back

a decentralized system of banks

Front

Why did abandoning the gold standard result in a decline in the value of the U.S. dollar?

Back

More currency was able to be printed thus reducing its value

Front

When Bartering, Cash is needed?

Back

FALSE

Front

In the U.S. free enterprise system one of the primary roles of the government is to —

Back

ensure the safety of products through regulation