2. FED 100 400 300 200 500 Monetary Policy Monetary Policy 100 400 300 200 500 Fiscal Policy 100 400 300 200 500 Vocab. 100 400 300 200 500 ? 100 400 300 200 500 End GameDouble Jeopardy

3. 100 Check Answer What is the full name of the FED

4. 100 Federal Reserve System

5. 200 Check Answer What are the 12 banks that carry out the FED’s policies?

6. 200 Federal Reserve Banks

7. Check Answer300 Who sets the Fed’s policy on the purchase and sale of gov't securities?

8. 300 FOMC

9. Check Answer400 What group of people run the FED?

10. 400 Board Of Governors

11. Check Answer500 Who is the Chairman of the Board of Governors?

12. 500 Ben Bernanke

13. Check Answer100 FED’s decisions that affect the money supply is called….

14. 100 Monetary policy

15. Check Answer200 The buying and selling of government securities

16. 200 Open-Market Operations

17. Check Answer300 When the FED wants to make loans more attractive

18. 300 Loose Money/ Expansionary Monetary Policy

19. Check Answer400 When the FED wants to discourage banks from loaning out too much money

20. 400 Tight Money/ Contractionary Monetary Policy

21. Check Answer500 What are the THREE tools of the FED?

22. 500 1.Discount Rate 2.Reserve Requirement 3.Open Market Operations

23. Check Answer100 What are the two major tools of fiscal policy?

24. 100 1.Taxes 2.Government Spending

25. Check Answer200 What fiscal policy would not help solve the unemployment problem?

26. 200 Higher taxes

27. Check Answer300 What should the fiscal policy be during a (1) recession and (2) inflation using the Keynesian philosophy?

28. 300 1.Reduce taxes, increase government spending 2.Increase taxes, decrease government spending

29. Check Answer400 When will discretionary fiscal policy most stabilize the economy?

30. 400 Deficits occur during recessions and surpluses occur during inflation

31. Check Answer500 What is automatic stabilizers? Give an example.

32. 500 Money that changes hands from taxpayer to non-taxpayer; social security payments, unemployment compensation, US income tax system

33. Check Answer100 Informal name for the Federal Reserve System

34. 100 The FED

35. Check Answer200 Interest that banks charge each other for loans

36. 200 Federal funds rate

37. Check Answer300 Interest the FED charges banks for loans

38. 300 Discount rate

39. Check Answer400 The interest rate banks charge their best customers

40. 400 Prime Rate

41. Check Answer500 What are the 4 functions of the FED?

42. 500 1.Check clearing 2.Distribute paper currency 3.Bank for banks 4.Bank for government

43. Check Answer100 How do the members of the Board of governors get their jobs?

44. 100 Appointed by President and confirmed by Senate

45. Check Answer200 What is the FED trying to do to the nations money supply if it increases the discount rate?

46. 200 Decrease money supply

47. Check Answer300 What happens to the reserves of member banks when they borrow from the FED?

48. 300 Reserves Increase

49. Check Answer400 When the FED practices an expansionary Monetary policy, what happens on the open market?

50. 400 FED Buys Securities

51. Check Answer500 What are the 4 functions of the FED?

52. 500 1. Clears checks 2. Bank for Banks 3. Bank for Govt 4. Distribute Paper Currency

53. More Fiscal More Fiscal 200 800 600 400 1000 200 800 600 400 1000 Budgets 200 800 600 400 1000 200 800 600 400 1000 200 800 600 400 1000 End GameFinal Jeopardy More MISC. More FED FED Misc.

54. 200 Check Answer What should the Govt do to decrease unemployment?

55. 200 Increase spending

56. 400 Check Answer When the Govt practices expansionary Fiscal Policy, what happens to taxes?

57. 400 Decrease Taxes

58. 600 Check Answer What is supply side Economics?

59. 600 Govt provides incentives for producers to increase aggregate demand.

60. 800 Check Answer If GDP decreases and unemployment rises in 2 quarters, what would the appropriate fiscal policy be?

61. 800 Decrease taxes & increase spending

62. 1000 Check Answer When might demand-side Fiscal policy prove politically unpopular?

63. 1000 When the gov't attempts to raise taxes during an expansion & lower Taxes during a contraction

64. 200 Check Answer Who confirms the FED’s board of governors?

65. 200 Senate

66. 400 Check Answer Who appoints the FED board of governors?

67. 400 President

68. 600 Check Answer Who approves the Fed decisions?

69. 600 No One

70. 800 Check Answer To increase the money supply, how does the FED utilized the 3 tools?

71. 800 1.Lower DR 2.Lower RR 3.Buy Securities

72. 1000 Check Answer What type of Monetary policy is used when the Fed buys securities?

73. 1000 Expansionary Monetary Policy

74. 200 Check Answer What is a deficit budget?

75. 200 Spending > Revenue

76. 400 Check Answer What is a surplus budget?

77. 400 Revenue > Spending

78. 600 Check Answer What is a balanced budget?

79. 600 Spending = Revenues

80. 800 Check Answer What type of budget have we had since 2001?

81. 800 Deficit Budget

82. 1000 Check Answer 1.What is the gov't main source of revenue? 2.Give an example of Govt spending?

83. 1000 2.Defense, education, infrastructure, social programs 1.Taxes

84. 200 Check Answer Who primarily conducts fiscal policy?

85. 200 President/Congress

86. 400 Check Answer If GDP decreases and Unemployment rises in 2 quarters, what would be the appropriate Monetary policy?

87. 400 Decrease RR and decrease DR, Buy Securities

88. 600 Check Answer What phase of the business cycle are we currently in?

89. 600 Contraction/Trough

90. 800 Check Answer Give an example of Fiscal and monetary policies counteracting each other?

91. 800 Increase gov't spending & sell securities Answers may vary

92. 1000 Check Answer Receiving an unemployment check is an example of________ fiscal policy and is a ________ stabilizer.

93. 1000 Expansionary, Automatic

94. 200 Check Answer Government cuts personal income tax rates is an example of ________ fiscal policy & __________ spending.

95. 200 Expansionary & Discretionary

96. 400 Check Answer Government raises Income taxes this is an example of _________ fiscal policy.

97. 400 Contractionary

98. 600 Check Answer Transfer payments such as social security and welfare are an example of ________ _______.

99. 600 Automatic Stabilizers.

100. 800 Check Answer What fiscal policy would not help solve the unemployment problem?

101. 800 Higher Taxes

102. 1000 Check Answer List 4 examples of Automatic Stabilizers

103. 1000 Unemployment, Social Security, US Income Tax System, Medicaid/Medicare (Answers may vary)

104. AAAA 200 800 600 400 1000 BBBB 200 800 600 400 1000 CCCC 200 800 600 400 1000 DDDD 200 800 600 400 1000 200 800 600 400 1000 End GameFinal JeopardyE

105. Check Answer Given the current economic conditions, what would be the appropriate monetary and fiscal policies? What are limits to these policies?

106. Final Jeopardy 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)