AP gopo economics policy making

What is a defining feature of multinational corporations?

• Operate only in their home country

• Have vast holdings in many countries

• Are owned by the government

• Focus solely on local markets

Which of the following best describes a mixed economy?

• No government involvement

• Government ownership of all resources

• Combination of private and government roles

• Only private ownership

Which system is characterized by the government acting as a taxer and employer?

• Capitalism

• Mixed Economy

• Communism

• Traditional Economy

Which political party emphasizes unemployment?

• Republicans

• Democrats

• Green Party

• Libertarians

Which economic issue is linked to the devaluation of the dollar?

• Unemployment

• Inflation

• Trade deficits

• Interest rates

What is the primary concern of Democrats according to the document?

• Inflation

• Unemployment

• Tax cuts

• Foreign policy

What can too much cash and credit in the economy produce?

• Deflation

• Inflation

• Economic stability

• Decreased interest rates

What does the money supply affect?

• Tax rates

• Rate of interest paid

• Employment rates

• Government budgets

What does the Federal Reserve control besides inflation?

• Taxation

• Interest rates and debt/credit

• Employment laws

• Trade agreements

What is a consequence of too much cash in the economy?

• Decreased inflation

• Increased inflation

• Stable prices

• Lower interest rates