Monetary / Fiscal Policy

Front

An example of expansionary fiscal policy would be: cutting taxes., cutting government spending., cutting production of consumer goods., cutting prices of consumer goods.

Back

cutting taxes.

Front

How could the Federal Reserve encourage banks to lend out more of their reserves? Options: reduce the discount rate, raise the required amount of reserve, increase the prime rate, reduce the money supply

Back

reduce the discount rate

Front

Open market operations are

Back

the buying and selling of government securities (bonds) to alter the supply of money.

Front

The rate the Fed charges banks for a loan

Back

Discount rate

Front

The use of taxes and government spending to affect the economy

Back

Fiscal Policy

Front

A plan implemented by Congress to reduce demand and slow the economy

Back

Contractionary Fiscal Policy

Front

The manipulation of the money supply in order to influence the cost and the availability of credit and money lending is

Back

Monetary Policy

Front

If the Federal Reserve raises interest rates to combat rapid inflation, what might be a negative outcome?

Back

Unemployment rates would rise

Front

Which of the following is a monetary policy action used to combat a recession? Options: cutting taxes, increasing the money supply, decreasing the money supply, raising taxes

Back

increasing the money supply

Front

The Federal Reserve wants to reduce the nation's money supply. This could be accomplished by doing all of the following EXCEPT: decreasing the discount rate., increasing the reserve requirement., selling securities on the open market., making banks hold a reserve for all types of deposits.

Back

decreasing the discount rate.