chương 3

Expansionary fiscal policy are policies ............by a government that often increases or decreases the money supply to make changes to the economy.

• enacted

• improved

• boosted

• proposed

When the government runs a deficit, it meets some of its expenses by issuing.....

• Securities

• bonds

• shares

• notes

Rising wages lead to inflation and asset ......... begin to form.

• Growth

• shrinking

• change

• bubbles

The government wants to reduce unemployment, increase consumer demand, and avoid a ............

• Overheating

• inflation

• recession

• economic growth

By using subsidies, transfer payments (including welfare programs), and income tax cuts, expansionary fiscal policy puts more money into consumers' hands to give them more.............

• purchasing power

• power

• income

• energy

When the economy is overly active and inflation......., it may increase taxes or reduce spending.

• threat

• threaten

• threatens

• threating

Rather than lowering taxes, the government may seek economic expansion by increasing ........(without corresponding tax increases).

• growth

• trade balance

• transfer payment

• spending

When a balance between price and demand is......, then companies can expect to thrive and grow

• Equal

• met

• different

• mixed

The purpose of contractionary fiscal policy is to ........growth to a healthy economic level.

• Improve

• realize

• increase

• slow

Shrinking the money supply decreases............ It gives consumers less purchasing power.

• Demand

• quantity demanded

• supply

• quantity supplied