Unit 5 Pre-Assessment

Someone who does not pay taxes cannot use a public good.

• True
• False

The federal income tax of the United States is a graduated tax

• True
• False

The Government acts as a watchdog over banks and the stock market

• True
• False

It is the federal and state government’s responsibility to protect the consumer

• True
• False

Expansionary fiscal policy is intended to slow down the economy

• True
• False

Contractionary fiscal policy is intended to slow down the economy

• True
• False

Predicting the future of the economy is easy.

• True
• False

The Government controls how much money the banks can lend out.

• True
• False

Monetary policy relies on the government’s ability to control the nation’s money supply in order to promote economic growth and stability

• True
• False

There are five tools the Fed uses to regulate the supply of money and credit in the economy

• True
• False