Potpourri1
This will happen if the Federal reserve buys bonds.
What is increase the money supply?
If you want to enact a contractionary fiscal policy, you would raise taxes and/or do this.
Cut government spending.
If the federal government wants to encourage businesses and consumers to spend less money, it would do this.
What is increase taxes or decrease spending?
When the federal government sends money to citizens during a financial crisis (a dubious action at best), it is trying to do this to the economy.
What is stimulate it?
The Federal Reserve wants to increase the money supply, so it will _____ securities on the open market.
What is buy?
If you pay a larger share/percentage of a tax based on your higher income than a lower income person, you are paying this type of tax.
What is a progressive tax?
The Federal Reserve conducts monetary policy to do one of two things to the money supply.
What is increase or decrease?
The Federal Reserve increases the reserve requirement in order to do this to the money supply.
What is decrease it?
A sales tax, which is regressive, would hurt these people the most.
What are low income?
The government decides to issue income tax rebates to taxpayers. The purpose of this is to encourage consumers ...
What is to spend money?
Spending in the economy is declining and unemployment is rising, prompting the federal government to do this.
What is increase government spending?
The ultimate goal of the Federal Reserve in manipulating the money supply is to raise or lower this.
What are interest rates?
This organization has been described as a "bank for banks."
What is the Federal Reserve?
To combat a threatened DEflationary crisis, the Federal Reserve would do what to open market purchases and the reserve requirement?
What is make open market purchases, and decrease the reserve requirement.
The Federal Reserve would be inclined to sell bonds if the economy is in this stage of the business cycle.
What is the recovery (peak)?
Buying a new tank for the army is an example of this type of policy.
What is fiscal?
The Federal Reserve would sell bonds to lower the money supply and raise interest rates because the economy is in this phase of the business cycle.
What is recovery?
The entire purpose of monetary policy is to affect these.
What is interest rates on loans?
Fiscal policy is accomplished by ...
What is the federal government?
The Federal Reserve buys securities in order to do this to the money supply and aggregate demand.
What is increase, and increase?
This will happen if the federal government runs a budget deficit for this year.
What is increase the national debt?
A tax that is the same percent for everyone is this type of tax.
What is proportional?
The federal government wants to encourage businesses and consumers to spend more money. To accomplish this, it would ...
What is cut taxes (and increase spending)?
The Federal Reserve sells bonds, having this effect on the money supply and inflation.
What is decrease, and fall?
The personal federal income tax is an example of this tax.
What is progressive?