Macroeconomics
Fiscal Policy
Monetary Policy
Misc. 1
Misc. 2
100
What is macroeconomics?
What is the study of how the government and federal reserve work so as to affect the overall money supply.
100
What is fiscal policy?
What is the governments attempt to push the economy towards stability using taxing and spending.
100
What is monetary policy?
What is how the Federal Reserve uses open market operations, the required reserve ratio, and the discount rate to fight inflation and recession.
100
What type of tax taxes the rich more than the poor?
What is a progressive tax
100
What type of tax taxes the poor more than the rich?
What is Regressive Tax.
200
If a nation spends more than it brings in on taxes in a given year, it will run a ______.
What is deficit
200
What type of tax charges everyone the same amount regardless of income?
what is proportional tax
200
What is the most common tool the federal reserve uses?
What is the Open Market Operations- buying and selling bonds
200
What is the function of money that allows us to measure the value of goods and services?
What is store of value
200
What causes a deficit?
What is when the government spends more than it gets in returns.
300
What are the two problems are economic policies always trying to fight?
What is recession and inflation
300
_____________ taxes causes the economy to contract
What is increasing or raising taxes
300
What type of policy will the Federal Reserve use if the economy is experiencing inflation?
What is contractionary
300
What are the functions of money?
What is store of value, medium of exchange, and unit of account?
300
What are the three goals every economy is trying to achieve?
What is price stability, full employment, and economic growth
400
At what point in the business cycle would the economy experience inflation?
What is contractionary period
400
__________ taxes causes the economy to expand.
What is decreasing or cutting taxes
400
Who owns the Federal Reserve and who runs it?
What is it is privately owned and it is run by a board of trustees led by Janet Yellin
400
What do banks do with excess reserves?
Loan them out to other individuals and businesses.
400
What are the three types of taxes?
What is progressive, regressive, and proportional
500
What is the difference between debt and deficit?
Deficit is the over spending on goods or services. Debt is the total deficit over time.
500
What should the government do if it wants to increase the money supply?
What is decrease taxes and increase government spending.
500
What should the Federal Reserve do to increase the amount of money in the money supply?
What is lower the required reserve ratio, decrease discount rates, and buy back bonds
500
How is money created without being printed?
What is the multiplier effect.
500
What is the function of money that facilities voluntary exchange?
What medium of exchange
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