AP Macroeconomics Unit 5-Consequences of Stabilization Policies

Front

When the government spends more money than they take in each year, it is called a -

Back

deficit.

Front

"The Fed" refers to the -

Back

Federal Reserve System.

Front

What is the purpose of the Monetary Policy?

Back

To contribute to economic growth and stability

Front

What are IOUs from the U.S. government to people that finance a little piece of the government's debt in exchange for a very small amount of interest?

Back

Government Bonds, or Securities

Front

The primary role of the Federal Reserve Bank is to steer the economy by -

Back

controlling the money supply.

Front

What is the name of the cash that banks must keep in the vault called?

Back

Required reserves

Front

The exchange of goods and services without using money is known as -

Back

bartering.

Front

Which of the following would the FED use to increase the money supply?
Raise the discount rate,
Raise the required reserves,
Buy bonds and/or securities,
Print more money

Back

Buy bonds and/or securities

Front

Fiat money is -

Back

money that is only valuable because the government says it is.

Front

If the Federal Reserve wanted to stimulate the economy, they might - buy treasury bonds.

Back

buy treasury bonds.