Monetary Policy
Eliza has a great idea for a product and begins to do everything she can to produce the product so people can but it on the open market. What economic term is being displayed in this situation?
Entrepreneurship
Gabe attempts to get his product sold to the most people, for the most money, while having no leftovers from production. What economic term is being displayed in this situation?
Equilibrium
Sensing a turn in the business cycle, the Fed reduces the discount rate to combat fears of a recession. What economic term is being displayed in this situation?
Expansionary
American car sales are well behind what is considered healthy. Layoffs in the auto industry have been increasing. What monetary policy could be used to correct the situation?
Expansionary money policy
In the last 16 months sales of consumer goods have decreased, causing retailers to layoff workers. What monetary policy could be used to correct the situation?
Expansionary money policy
Describe a situation where the Fed would introduce a contractionary money supply/policy.
When worried about inflation.
How many Federal Reserve Districts are there?
12 federal reserve districts
List out all the "tools" that can be used for monetary policy.
Bonds, loans, and rates
Alexis understands that even though her business is doing well now, there will come a time when her business shrinks with the economy. What economic term is being displayed in this situation?
Business cycle
The inflation rate in the U.S. continues to climb more than 10% each year. What monetary policy could be used to correct the situation?
Contractionary money policy.
Bill knows that no matter how much he produces, someone will always want more of his delicious Heart-Attack Stack Cheeseburger special. What economic term is being displayed in this situation?
Demand
In order to fight a growing recession, the government moves to reduce taxes for the majority of tax payers in America. What economic term is being displayed in this situation?
Demand-side economics
When you buy a United States Savings Bond, who are you loaning money to?
Government
Who is the current head of the Federal Reserve?
Jerome Powell
What effect would an increase in the discount rate have on the money supply?
Less money in circulation
What monetary policy could the Federal Reserve use to encourage banks to lend out more of their reserves?
Low discount rate
Which group in America would most likely be hurt by unexpected inflation?
Retiree
Where is Arizona's District Bank of the Federal Reserve?
San Francisco district
What type of monetary policy does the Federal Reserve use to counteract expansion that is causing high interest rates?
Tight money policy
Congress is getting concerned that the unemployment numbers are going to be very high this quarter and are also concerned that the Gross Domestic Product of the United States is down. What economic term is being displayed in this situation?
Unemployment
