Chapter 02 - Understanding How Economics Affects Business
150. The Federal Reserve Board is responsible for controlling the money supply. Level of Learning 1: Knowledge of key terms True False
151. Monetary policy is directly under the control of the U.S. Department of the Treasury. Level of Learning 1: Knowledge of key terms True False
152. One of the major ways the Fed influences economic conditions is through its control of interest rates. Level of Learning 1: Knowledge of key terms True False
153. High tax rates that put money into the government's coffers tend to slow spending, and ultimately slow the economy. Level of Learning 2: Understanding of concepts and principles True False
154. If the government wants to jump-start the economy resulting in more consumer spending, it will raise taxes. Level of Learning 2: Understanding of concepts and principles True False
155. Monetary policy is implemented to ease the up and down swings of business cycles, while fiscal policy is implemented to create swings when the cycle is stalled in an economic boom. Level of Learning 2: Understanding of concepts and principles True False
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