Macro
What is the earth's largest ocean
Pacific
What is a baby goat called?
A Kid
How many colors are in the rainbow?
7
Gross Domestic Product
Who lives at Number 4, Privet Drive?
Harry Potter
The central bank of the United States is known as the
The Federal Reserve
If the fed wants interest rates to increase, what may they do to the money supply?
Decrease it
The actions of the FED that control and regulate the amount of money in the economy are referred to as
Monetary Policy
The board of governors and the 12 district bank presidents make up what entity in the federal reserve?
Federal Open Market Committee (FOMC)
Refers to a government’s use of taxes and spending to influence economic conditions.
Fiscal Policy
When the money supply is increased, will the price level increase or decrease?
The price level will increase
As the money supply increases, the ability of consumers to purchase goods and services increases and this, in turn, will drive prices higher over time.
What is included in the unemployment rate?
People who want a job, but don't have one
The two primary goals (sometimes referred to as the dual mandate) of the Federal Reserve Bank are
Maximum employment and stable prices
Refers to rules and actions that affect the nation’s supply of money and credit.
Monetary policy
I have 2 million in revenue and 3 million in expenditures, what is occuring?
Budget Deficit
What is the most likely reason to implement an expansionary monetary policy?
to reduce unemployment
Unemployment is rampant, which type of policy may the US Government adopt?
Expansionary Fiscal Policy
The purpose of FOMC and its activities?
The FMOC establishes a policy by which federal banks expand or restrict credit
How many regional banks are in the Federal Reserve System?
12
An accumulation of deficits over time adds to the __________, which is the total amount of money owed by the federal government.
federal debt
Name 4 different groups of people who would not be included in unemployment
Could be:
Students, retired, mentally incapable, incarcerated, farmers, soldiers, stay at home parents
Ned is a typewriter repairman. As typewriters are being replaced by computers Ned finds less and less work. What kind of unemployment is Ned experiencing?
structural unemployment
In the late 1970s, inflation rates in the United States rose dramatically, peaking at over 13%. In response, the Federal Reserve raised interest rates to nearly 20%. What type of policy was this action?
contractionary monetary policy
Which component of the Federal Reserve System holds the most influence in regards to the direction of monetary policy?
The Federal Open Market Committee (FOMC)
includes the Board of Governors and representatives from the 12 district banks. Therefore, the FOMC is going to be more powerful as a whole than it's individual components.
In order to achieve the goals of maximum employment and stable prices the Fed targets which variable in the U.S. economy?
Interest Rates