MAC2602 Assignment September 2024
Fiscal policy ________.
can be used to increase economic activity
always results in increasing the national debt
reduces the money supply
increases the money supply - answer-can be used to increase economic activity
By changing ________, the Federal Reserve can expand or shrink funds available
to lend.
fees charged on household and business checking and savings accounts
spending
,taxes
interest rates - answer-interest rates
The Federal Reserve slows the growth in the supply of money and credit. Interest
rates will likely ________, which is an example of ________ policy.
fall; fiscal
rise; monetary
rise; fiscal
fall; monetary - answer-rise; monetary
Business borrowing becomes more difficult when ________.
the Federal Reserve increases the money supply
the federal government increases spending
,the federal government decreases spending
the Federal Reserve decreases the money supply - answer-the Federal Reserve
decreases the money supply
The U.S. population is ________.
less diverse that it was 30 years ago
declining
expanding too rapidly
getting older - answer-getting older
Individual and business decisions are ________ by economic conditions and, in
turn, economic conditions are ________ by their decisions.
not affected; not affected
, affected; affected
affected; not affected
not affected; affected - answer-affected; affected
An increase in consumers' incomes causes the ________.
supply curve to shift to the left
demand curve to shift to the left
supply curve to shift to the right
demand curve to shift to the right - answer-demand curve to shift to the right
In general, as the price of a good or service increases, the quantity demanded:
decreases
increases
Fiscal policy ________.
can be used to increase economic activity
always results in increasing the national debt
reduces the money supply
increases the money supply - answer-can be used to increase economic activity
By changing ________, the Federal Reserve can expand or shrink funds available
to lend.
fees charged on household and business checking and savings accounts
spending
,taxes
interest rates - answer-interest rates
The Federal Reserve slows the growth in the supply of money and credit. Interest
rates will likely ________, which is an example of ________ policy.
fall; fiscal
rise; monetary
rise; fiscal
fall; monetary - answer-rise; monetary
Business borrowing becomes more difficult when ________.
the Federal Reserve increases the money supply
the federal government increases spending
,the federal government decreases spending
the Federal Reserve decreases the money supply - answer-the Federal Reserve
decreases the money supply
The U.S. population is ________.
less diverse that it was 30 years ago
declining
expanding too rapidly
getting older - answer-getting older
Individual and business decisions are ________ by economic conditions and, in
turn, economic conditions are ________ by their decisions.
not affected; not affected
, affected; affected
affected; not affected
not affected; affected - answer-affected; affected
An increase in consumers' incomes causes the ________.
supply curve to shift to the left
demand curve to shift to the left
supply curve to shift to the right
demand curve to shift to the right - answer-demand curve to shift to the right
In general, as the price of a good or service increases, the quantity demanded:
decreases
increases
