AnswersHSA 26-27 EconomicsFiscal Policy: Taxes

Fiscal Policy: Taxes Answers

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1
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Which factor most directly influences how much money consumers are willing to borrow?

A
influencing economic growth
B
influencing unemployment rates
C
changing inflation rates
D
changing interest rates
2
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✔ stabilityinflationrecessions

A
stability
B
inflation
C
recessions
3

X expansionary contractionary

A
expansionary
B
contractionary
4

✔ expansionarycontractionary

A
expansionary
B
contractionary
5

expansionaryX contractionary

A
expansionary
B
contractionary
6

state bankcentral bankdistrict bank

A
state bank
B
central bank
C
district bank
7

interest ratessecurities

A
interest rates
B
securities
8

In this scenario, what is the Fed trying to do by increasing interest rates? Check all that apply.

A
decrease the amount of money that banks have to lend
B
increase the money supply for banks
C
reduce the amount of available credit
D
discourage consumer borrowing by increasing interest rates on loans
E
encourage banks to loan more money
9

Identify the goals of the central bank when creating monetary policy. Check all that apply.reducing employmentinfluencing the business cyclereducing economic growthencouraging economic growthavoiding periods of time where little credit is available

A
reducing employment
B
influencing the business cycle
C
reducing economic growth
D
encouraging economic growth
E
avoiding periods of time where little credit is available
10

Private banksThe ConstitutionThe Federal Reserve Act of 1913

A
Private banks
B
The Constitution
C
The Federal Reserve Act of 1913
11

Federal Reserve Interest RateLoan Interest RateFederal Funds Rate

A
Federal Reserve Interest Rate
B
Loan Interest Rate
C
Federal Funds Rate
12

increasedecreasestay the same

A
increase
B
decrease
C
stay the same

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Fiscal Policy: Taxes Answers — HSA 26-27…