MacroEconomics

Fical policy is _____________ or ___________ policy used to keep the economy stable or to assist in time of recession.

• taxing; psychological

• spending; stabilizing

• spending; taxing

• ludicrous; fanciful

The idea of government intervention to help in a financial crisis was proposed by which economist?

• Keynes

• Maslow

• Friedman

• Adam Smith

Programs that are triggered (social security, progressive taxes) if changes in the economy threaten personal income are called

• mood stabilizers

• automatic stabilizers

• implementation lag

• legislative lag

Fiscal spending can increase the overall stimulus in the economy if the same funds are spent by several people. This is called the _____________ effect.

• supply side

• keynsian economics

• implementation lag

• multiplier

Supply side economics has been widely criticised because the reduction of taxes does not lead to what?

• an increase in taxes collected

• shopkeeper's stress

• Reagonomics

• truth, justice and the American way

The Federal Reserve Bank ("The Fed") is a system of 12 regional banks which helps determine monetary policy and banking regulation.

• True

• False

Janet Yellin has nothing to do with The Fed.

• True

• False

The Fed can ___________ interest rates to help stop inflation

• even out

• raise

• decrease

• both increase and decrease

If the Fed sells government securites, this ____________ the money supply.

• increases/expands

• decreases/contracts

• does not affect

• is in spite of

Raising or lower the ____________ _____________, or how much cash a bank has to keep on hand, is a tool of monetary policy.

• open market operation

• discount rate

• reserve requirement

• dunkin' donuts