Interest Rates
True or False
When Interest rates are high, people take out more loans.
False
Roads and Bridges would be considered a _______________ Good.
Public
The _____________ conducts monetary policy
Fed
or
Federal Reserve
To influence macroeconomic conditions through government spending and tax policies is the purpose of ________________ policy.
Fiscal
To influence economic conditions like unemployment and inflation are the main goals of F________ and M________ Policy
Fiscal; Monetary
True or False
When Interest rates are low, people save more.
False
Helping producers to lower production costs is the primary purpose of government s___________.
Subsidies
The primary tool of the Fed to impact the money supply by adjusting ______________________. (two words)
Interest Rates
Cutting Government spending and raising taxes would be a/an (Expansionary/Contractionary) fiscal policy.
Contractionary
Increase
Reduce or Cut
Why are fewer houses sold when interest rates are high?
Mortgages loans cost too much.
or
It is too expensive/Less people qualify for a mortgage.
Government-imposed price ceiling on rental housing tset below the market equilibrium price will most likely cause a (surplus/shortage) of rental units.
shortage
What does FOMC stand for?
Federal Open Market Committee
A Government's Fiscal Policy during a recession might be to stimulate demand by S__________ and T____ cuts.
Spending
Tax
If unemployment was high what would the Federal Reserve do in their adjustment of interest rates.
Lower or reduce interest rates
When the Fed lowers interest rates they (contract/expand) the money supply.
Expand
Governments may sometimes impose P________ C________ in their economies so essential products will cost less for people.
Price Controls
What is the dual mandate of the Federal Reserve?
maximum employment
and
price stability
Sending households stimulus checks would be something the government would do as a/an (Expansionary/Contractionary) policy.
Expansionary
Creating public works projects and offering tax incentives to new businesses would be a government's response during a/an (Inflationary/Recessionary) period.
Recessionary
When the Fed raises interest rates they (contract/expand) the money supply.
Contract
When the government provides assistance with food, housing, or healthcare this would be an example of the government providing a S________ N______.
Safety Net
A contractionary fiscal policy of raising taxes is not used often because politicians think _____________.
they won't get re-elected
When the Federal Reserve learns that inflation is getting higher. They might begin a (loose/tight) monetary policy by (lowering/raising) interest rates.
Tight; Raising