48 - Monetary and Fiscal Policy: Crash Course Government and Pol

What is the primary role of the Federal Reserve in managing the economy?

• Controlling fiscal policy

• Managing foreign trade

• Controlling money supply and interest rates

• Regulating labor markets

How does the Federal Reserve influence how much banks borrow and lend?

• By setting tax rates

• By setting the discount rate

• By regulating stock markets

• By controlling government spending

What is the impact of adjusting reserve requirements by the Federal Reserve?

• It influences how much money banks can lend

• It changes the national debt

• It sets the federal budget

• It controls inflation directly

What complicates fiscal policy according to the text?

• High interest rates

• Political reluctance to raise taxes

• Low unemployment rates

• High levels of immigration

Why is it essential to understand public sentiment on taxes?

• It affects the stock market

• It influences fiscal policy effectiveness

• It determines the national debt

• It controls inflation rates