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Economics Ch. 14,15 Money, the Fed, Stabilization Ch. 14,15-a Flashcards | StudBud

Explore/Economics Ch. 14,15 Money, the Fed, Stabilization Ch. 14,15-a

Aggregate demand will increase

The Federal Reserve

Economics Ch. 14,15 Money, the Fed, Stabilization Ch. 14,15-a

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Answers

1
The Federal Reserve
is made up of independent district banks
was established in the 1920's
is managed by a 12 member board of directors
is made up of 12 district banks and member banks
2
Aggregate demand will increase
if consumers save more and spend less
if consumers save less and spend more
if the dollar declines in value
when productivity is low
3
Money loses its value when it
becomes too plentiful
is divisible
is durable
becomes too portable
4
When money is easily transferred from one person to another, it is said to be
durable
transferrable
portable
divisible
5
Decreases in aggregate supply can be caused by
reduced government regulation
higher interest rates
lower taxes
decrease in fuel and transportation costs
6
According to John Maynard Keynes's theories, a decline in investment spending will
lead to lower consumer prices
lead to a downward spiral in the economy
lead to an upward spiral in the economy
be offset by an increase in consumer demand
7
An easy money policy leads to an increase in ___________
interest rates
the reserve requirement
inflation
unemployment
8
When the Fed refers to M1, it is referring to such elements of the money supply as
travelers checks and currency
savings deposits
stocks
money market funds
9
A hypothetical relationship between federal income tax rates and tax revenues is
automatic stabilizer
aggregate demand curve
aggregate supply curve
Laffer Curve
10
The FDIC was established to
protect the savinigs of the American people
create a government banking monopoly
federalize the banking system
help with financing WW II