Econ Unit 5 Word Scramble
|
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
| Question | Answer |
| The Federal Reserve institutes a tight monetary policy in order to reign in inflation. What is a likely consequence of such action? | The unemployment rate will rise |
| Which of these actions of the Federal Reserve can slow economic growth? | The Federal Reserve increases the discount rate, which causes interest rates to rise and people to save rather than to spend. |
| The process by which the Federal Reserve controls the supply, availability, and cost of money in order to keep the economy stable is | monetary policy |
| What is the effect of an expansionary fiscal policy upon an economy with and increasing budget deficit and growing national debt | Increased deficit spending and decreasing or shrinking national debt |
| When the federal reserve sells government securities on the open market, what effect does this action have on the nations money supply and interest rates | Money supply decreases/ Interest rates increase |
| Fearing a recession, the government decides to give citizens a tax rebate check to buy Christmas gifts. What is a possible outcome of this action? | high rates of inflation |
| Many local governments rely on sales taxes for much of their revenue. When they have budget shortages, why do they not simply raise rates as needed? | Higher rates could drive business to other countries |
| Which pairs of operations BEST fit with fiscal policy? | government spending and regulation |
| The economy is experiencing rapid inflation, pushing above 9%. Which fiscal policy action should the government implement in an attempt to fix this problem? | raise taxes |
| How will a contractionary fiscal policy affect a budget deficit? | shrink the deficit |
| Which of these is MOST LIKELY to occur after the government increases taxes? | consumer spending decreases |
| What consumer behavior is the Federal Reserve Board trying to encourage when it implements a loose monetary policy? | decreased saving and increased spending |
| What is the name of the "central bank" of the United States? | The Federal Reserve |
| You want a new truck. How can the Federal Reserve's raising of the discount rate affect your decision to purchase the truck? | It will raise interest rates and make your truck payment higher |
| If the federal government wants to encourage businesses and consumers to spend more money, it would MOST LIKELY | decrease the tax rate |
| State governments often decide to place a "sin tax" on specific products or goods, like alcohol and tobacco. Which rationale is LEAST LIKELY to encourage governments to adopt a "sin tax"? | "Sin taxes" disproportionately affect lower income groups |
| The federal government uses government spending and tax rates to help control recessions and encourage economic activity. This is called | fiscal policy |
| The Federal Reserve has kept interest rates very low. Some might argue that this could lead to | inflation |
| Which action by the Federal Reserve would help to slow down rising inflation? | sell bonds |
| -Setting the discount and interest rates -Establishing reserve requirements for banks -Buying and selling US Government Securities All of these are ways in which the federal reserve system can | regulate the money supply |
Created by:
LONAHENDERSON
Popular Economics sets