Federal Budget

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.

____________ is the price paid for the use of money.

• Gold

• Monetary policy

• Fiscal policy

• The interest rate

Government spending that is required by existing laws to spend on certain programs.

• Revenue

• Discretionary spending

• Mandatory spending

• Fiscal policy

When the government spends more money than it takes in.

• Budget deficit

• Revenue

• Discount rate

• Federal funds rate

Government spending determined by the President and Congress each year in the budget and appropriations process.

• Revenue

• Discretionary spending

• Mandatory spending

• Fiscal policy

The income received by a government from taxes and other non-tax sources.

• Budget

• Revenue

• Federal funds rate

• Government bond

A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?

• inflation

• recession

what does GDP stand for:

(a)  

An Italian company purchases a one-year membership to PartyPeople.com, a U.S.-based company.

How is GDP impacted?

• GDP decreases

• GDP increases

• GDP does not change

Ford Motor Company purchases tires from Michelin to use in producing its new vehicles.

How is GDP impacted?

• GDP decreases

• GDP increases

• GDP does not change