Econ Unit 3b Review

Which part of the Federal Reserve is responsible for deciding monetary policy?

• 12 district banks

• Federal Open Market Committee

• Congress

• President of the New York Bank

what fiscal policy would the government use to return the economy to full employment?

• Decrease interest rates

• 
  Decrease government spending

• Increase government spending

• 
  Increase Taxes

Which of the following role of the Federal Reserve is demonstrated by the headline above?

• Issuing new currency

• Payment processing

• Supervising banks

• Deciding monetary policy

Based on the news headline below, what would monetary policy action would the Federal Reserve take?

• 
  Raise interest rates

• Raise government spending

• Lower income taxes

• Lower interest rates

What role is the United States Govt fulfilling if they are splitting up Ticketmaster and Live Nation from becoming a monopoly?

• Redistributing income

• Resolving a market failure

• Protecting property rights

• Providing a public good or service

The United States government passed a law to increase spending to hire employees to work on new roads and bridges for the current budget year.

Assuming government tax revenue remains the same in the scenario above, which TWO of the following best describes the result of the government action seen here?

• Increase in the US Debt & Increase in the US budget deficit

• Increase in the US Debt & Decrease in US debt

• Decrease in US Budget

• Decrease in US debt

Which part of the Federal Reserve system is responsible for government oversight of the central bank?

• Board of Governors

• Monetary Review Board

• 12 District Bank Presidents

• Fiscal Review Board

The Federal Reserve has a dual mandate of price stability and.......

• Raising taxes for the government

• 
  Lowering the national debt.

• 
  Full (Maximum) Employment

• 
  Lowering government spending.

Which pairs of operations BEST fit with fiscal policy?

• government spending and taxation

• 
  taxation and interest rates   

• money supply and government spending

• interest rates and taxation

Fearing a recession, the government decides to reduce taxes to help citizens buy Christmas gifts. What is a possible outcome of this action?

• lower interest rates

  
  

• higher Interest Rates

  
  

• lower Rates of unemployment

  
  

  
  

• higher rates of unemployment