fed 100 400 300 200 500 monetary policy monetary policy 100 400 300 200 500 fiscal policy 100 400...

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FED FED 10 0 40 0 30 0 20 0 50 0 Monetary Monetary Policy Policy 10 0 40 0 30 0 20 0 50 0 Fiscal Fiscal Policy Policy 10 0 40 0 30 0 20 0 50 0 Vocab Vocab . . 10 0 40 0 30 0 20 0 50 0 ? 10 0 40 0 30 0 20 0 50 0 End Game Double Jeopardy

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FED FED

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MonetarMonetaryy

Policy Policy

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Fiscal Fiscal

Policy Policy

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VocaVocab. b.

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??

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End Game Double Jeopardy

101000

Check Answer

What is the full name of the FED

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Federal Reserve System

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Check Answer

What are the 12 banks that carry out the FED’s policies?

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Federal Reserve Banks

Check Answer300300

Who sets the Fed’s policy on the purchase and sale of gov't securities?

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FOMC

Check Answer400400

What group of people run the FED?

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Board Of Governors

Check Answer500500

Who is the Chairman of the Board of Governors?

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Ben Bernanke

Check Answer1010

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FED’s decisions that affect the money supply is called….

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Monetary policy

Check Answer2020

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The buying and selling of government securities

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Open-Market Operations

Check Answer300300

When the FED wants to make loans more attractive

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Loose Money/ Expansionary Monetary Policy

Check Answer4040

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When the FED wants to discourage banks from

loaning out too much money

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Tight Money/ Contractionary Monetary Policy

Check Answer500500

What are the THREE tools of the FED?

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1.Discount Rate2.Reserve Requirement

3.Open Market Operations

Check Answer1010

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What are the two major tools of fiscal policy?

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1.Taxes

2.Government Spending

Check Answer2020

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What fiscal policy would not help solve the unemployment

problem?

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Higher taxes

Check Answer300300

What should the fiscal policy be during a (1) recession and (2) inflation using the Keynesian

philosophy?

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1.Reduce taxes, increase government spending

2.Increase taxes, decrease government spending

Check Answer4040

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When will discretionary fiscal policy most stabilize the economy?

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Deficits occur during recessions and surpluses occur during

inflation

Check Answer500500

What is automatic stabilizers?Give an example.

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Money that changes hands from taxpayer to non-taxpayer; social

security payments, unemployment compensation,

US income tax system

Check Answer1010

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Informal name for the Federal Reserve System

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The FED

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Interest that banks charge each other for loans

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Federal funds rate

Check Answer300300

Interest the FED charges banks for loans

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Discount rate

Check Answer4040

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The interest rate banks charge their best customers

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Prime Rate

Check Answer500500

What are the 4 functions of the FED?

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1.Check clearing2.Distribute paper currency

3.Bank for banks4.Bank for government

Check Answer1010

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How do the members of the Board of governors get

their jobs?

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Appointed by President and confirmed by Senate

Check Answer2020

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What is the FED trying to do to the nations money supply if it increases the discount rate?

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Decrease money supply

Check Answer300300

What happens to the reserves of member banks when they borrow from the FED?

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Reserves Increase

Check Answer4040

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When the FED practices an expansionary Monetary policy, what happens on the open market?

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FED Buys Securities

Check Answer500500

What are the 4 functions of the FED?

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1. Clears checks2. Bank for Banks3. Bank for Govt4. Distribute Paper Currency

More More Fiscal Fiscal

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BudgetsBudgets

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End Game Final Jeopardy

More More MISCMISC

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MoreMore FED FED Misc.

200200 Check Answer

What should the Govt do to decrease unemployment?

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Increase spending

404000

Check Answer

When the Govt practices expansionary Fiscal Policy, what

happens to taxes?

404000

Decrease Taxes

600600 Check Answer

What is supply side Economics?

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Govt provides incentives for producers to increase aggregate demand.

800800 Check Answer

If GDP decreases and unemployment rises in 2 quarters, what would the

appropriate fiscal policy be?

800800

Decrease taxes & increase spending

10010000

Check Answer

When might demand-side Fiscal policy prove politically unpopular?

10010000

When the gov't attempts to raise taxes during an

expansion & lower Taxes during a contraction

200200 Check Answer

Who confirms the FED’s board of governors?

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Senate

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Check Answer

Who appoints the FED board of governors?

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President

600600 Check Answer

Who approves the Fed decisions?

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No One

800800 Check Answer

To increase the money supply, how does the FED

utilized the 3 tools?

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1. Lower DR

2. Lower RR

3. Buy Securities

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Check Answer

What type of Monetary policy is used when the Fed buys securities?

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Expansionary Monetary Policy

200200 Check Answer

What is a deficit budget?

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Spending > Revenue

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What is a surplus budget?

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Revenue > Spending

600600 Check Answer

What is a balanced budget?

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Spending = Revenues

800800 Check Answer

What type of budget have we had since 2001?

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Deficit Budget

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Check Answer

1.What is the gov't main source of revenue?

2.Give an example of Govt spending?

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2.Defense, education, infrastructure, social programs

1.Taxes

200200 Check Answer

Who primarily conducts fiscal policy?

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President/Congress

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Check Answer

If GDP decreases and Unemployment rises in 2

quarters, what would be the appropriate Monetary policy?

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Decrease RR and decrease DR, Buy

Securities

600600 Check Answer

What phase of the business cycle are we currently in?

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Contraction/Trough

800800 Check Answer

Give an example of Fiscal and monetary policies counteracting each other?

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Increase gov't spending & sell securities

Answers may vary

10010000

Check Answer

Receiving an unemployment check is an example of________ fiscal policy and is a ________ stabilizer.

10010000

Expansionary,

Automatic

200200 Check Answer

Government cuts personal income tax rates is an example of ________ fiscal policy & __________ spending .

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Expansionary & Discretionary

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Check Answer

Government raises Income taxes this is an example of _________ fiscal policy.

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Contractionary

600600 Check Answer

Transfer payments such as social security and welfare are an example of ________

_______.

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Automatic Stabilizers.

800800 Check Answer

What fiscal policy would not help solve the unemployment problem?

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Higher Taxes

10010000

Check Answer

List 4 examples of Automatic Stabilizers

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Unemployment, Social Security, US Income Tax System, Medicaid/Medicare

(Answers may vary)

AA

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BB

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CC

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DD

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End Game Final Jeopardy

EE

Final Final JeopardyJeopardy

Check Answer

Given the current economic conditions, what would be the

appropriate monetary and fiscal policies?

What are limits to these policies?

Final Final JeopardyJeopardy

1. Monetary= Lower RR, Lower DR, Buy Securities

Fiscal = Tax cuts & increase spending

2. FED can’t force banks to loan money

Gov’t can’t force people to spend the money they give them (tax cuts)