Warm-up:
Which of the following is an example of fiscal policy?
a. The Federal Reserve System tries to prevent inflation.
b. The International Monetary Fund makes a loan to a developing country.
c. The government decreases taxes to fight unemployment.
d. The principal says seniors no longer need to take English.
Say that the government, in an effort to fight unemployment, decides to increase its spending by hiring people to repair roads. Explain how hiring one person to repair a road could result in several people having more income to spend.
Which of the following is an example of monetary policy?
a. Change the reserve requirement for banks.
b. The International Monetary Fund makes a loan to a developing country.How does the FED "create" money?
c. The government decreases taxes to fight unemployment.
d. The principal says seniors no longer need to take English.
How does the FED "create" money?
a. The Federal Reserve System tries to prevent inflation.
b. The International Monetary Fund makes a loan to a developing country.
c. The government decreases taxes to fight unemployment.
d. The principal says seniors no longer need to take English.
Say that the government, in an effort to fight unemployment, decides to increase its spending by hiring people to repair roads. Explain how hiring one person to repair a road could result in several people having more income to spend.
Which of the following is an example of monetary policy?
a. Change the reserve requirement for banks.
b. The International Monetary Fund makes a loan to a developing country.How does the FED "create" money?
c. The government decreases taxes to fight unemployment.
d. The principal says seniors no longer need to take English.
How does the FED "create" money?
Objective:
SWBAT describe how government impacts the American business cycle.