Econ - Ch. 14-15 Review

Limited gov't role in the economy

Policies designed to stimulate output and lower unemployment by increasing production.

Who is required to buy stock in the Federal Reserve?

Current chairperson of the Federal Reserve

Most effective fiscal policies to counter business cycles

The Federal Reserve

The FED is given control of the money supply through

How does a lower reserve requirement impact the money supply and the economy?

Use of gov't spending and revenue collection to influence the economy.

According to the multiplier-accelerator effect, a decline in investment spending will

Which of the following would cause a decrease in aggregate supply?

According to Keynes, which sector of the economy was large enough to offset changes in 'I' spending?

Insures customer deposits in the event of a bank failure.

Money that has an alternative use as an economic good is

Aggregate demand will increase

Which of the following is not a characteristic of money?

Another name for supply-side economics

According to Keynes, which sector of the economy was the most unstable?

Which of the following would cause the aggregate demand curve to decrease?

The most important policy making body in the FED

Actions by the FED to expand or contract the money supply to affect cost and availability of credit.

Expands the gov'ts role in the economy:

Which of the following is NOT a monetary tool used by the FED?

Deregulation is most closely associated with

An expansionary fiscal policy will cause the AD curve to shift

A hypothetical relationship between federal income tax rates and tax revenue is the

Relates to money's function as a medium of exchange.

If the gov't wants to slow the economy down, which of the following would be used?