Question 1

Describe some of the ways that the Federal Reserve Board arguably affects the nation's economy as much as the president can.

Accepted Answer

The Federal Reserve Board arguably affects the nation's economy as much as the president can in several ways.

First, the Federal Reserve has the power to set monetary policy, which includes controlling interest rates and the money supply. By adjusting these factors, the Fed can influence borrowing and spending behavior, which in turn can impact economic growth, inflation, and employment levels.

Second, the Federal Reserve plays a crucial role in regulating the banking system and ensuring financial stability. Through its supervision and regulation of banks, the Fed can help prevent financial crises and maintain the overall health of the financial system, which has significant implications for the broader economy.

Additionally, the Federal Reserve has the ability to act as a lender of last resort, providing liquidity to financial institutions during times of crisis. This can help stabilize the financial system and prevent widespread economic disruptions.

Furthermore, the Federal Reserve's communications and public statements can have a significant impact on financial markets and investor confidence, which can in turn influence economic conditions.

Overall, the Federal Reserve's actions and decisions have far-reaching implications for the economy, and its influence is often compared to that of the president in terms of shaping economic outcomes.

Question 2

Which of the following taxes is not a major source (as in over 10 percent)of the federal government's revenue?

Accepted Answer

A) Individual income taxes 
B) Social income taxes 
C) Corporate income taxes 
D) Estate taxes 
E) All of these choices are major sources of federal government revenue. 
A) Individual income taxes 
B) Social income taxes 
C) Corporate income taxes 
D) Estate taxes 
E) All of these choices are major sources of federal government revenue. D

Question 3

The Federal Reserve can increase the money supply in all but which of the following ways?

Accepted Answer

A) The Fed can buy government securities. 
B) The Fed can lower interest rates by altering the federal funds rate. 
C) The Fed may change its discount rate. 
D) The Fed can increase its reserve requirement for member banks. 
E) All of these choices are true. 
A) The Fed can buy government securities. 
B) The Fed can lower interest rates by altering the federal funds rate. 
C) The Fed may change its discount rate. 
D) The Fed can increase its reserve requirement for member banks. 
E) All of these choices are true. D

Question 4

​If a policy rationale and the political will were present,___________ could eliminate expensive federal entitlement programs.

Accepted Answer

A) ​the President 
B) ​executive agencies 
C) ​the Congress 
D) ​the Supreme Court 
E) ​a simple majority of state legislatures 
A) ​the President 
B) ​executive agencies 
C) ​the Congress 
D) ​the Supreme Court 
E) ​a simple majority of state legislatures

Question 5

When asked in a recent national poll whether federal spending should be "increased,decreased or kept about the same" for eighteen different purposes,respondents said that every category of spending should be maintained or increased except ____________________.

Accepted Answer

A) ​highways, military defense and foreign aid 
B) ​welfare, unemployment aid and the space program 
C) ​education, aid to the world's needy, and child care 
D) ​military defense, unemployment aid, and aid to the world's needy 
E) ​Respondents believed every category of spending should be maintained or increased. 
A) ​highways, military defense and foreign aid 
B) ​welfare, unemployment aid and the space program 
C) ​education, aid to the world's needy, and child care 
D) ​military defense, unemployment aid, and aid to the world's needy 
E) ​Respondents believed every category of spending should be maintained or increased.

Question 6

Describe President George W.Bush's election tax pledges,and what happened to budget deficits during Bush's presidency.

Accepted Answer

President George W. Bush made several ta

Question 7

Developing budgets by using last year's budget as the base and adding an amount to cover the increased costs of doing business (inflation)and any new programs is called

Accepted Answer

A) deficit budgeting. 
B) the program planning budgeting system (PPBS). 
C) incremental budgeting. 
D) zero-based budgeting. 
E) cost analysis. 
A) deficit budgeting. 
B) the program planning budgeting system (PPBS). 
C) incremental budgeting. 
D) zero-based budgeting. 
E) cost analysis.

Question 8

The text suggests that no one in Congress is responsible for the budget as a whole because

Accepted Answer

A) one group in each house plans for revenues, and many other groups plan for spending. 
B) the executive branch dominates the process at every point. 
C) committee chairpersons make the critical decisions in secret. 
D) the election cycle creates too much turnover in membership. 
E) informal norms prevent members from revealing the sources of key decisions. 
A) one group in each house plans for revenues, and many other groups plan for spending. 
B) the executive branch dominates the process at every point. 
C) committee chairpersons make the critical decisions in secret. 
D) the election cycle creates too much turnover in membership. 
E) informal norms prevent members from revealing the sources of key decisions.

Question 9

​According to the text,_____________ have historically been most favored by America's tax policies.

Accepted Answer

A) ​poorer citizens 
B) ​the middle class 
C) ​those who gain most of their income from wages for work 
D) ​the richest citizens 
E) ​no particular citizens, compared to other groups, 
A) ​poorer citizens 
B) ​the middle class 
C) ​those who gain most of their income from wages for work 
D) ​the richest citizens 
E) ​no particular citizens, compared to other groups,

Question 10

The text observes that in the aftermath of the stimulus passed  in response to the 2008 economic downturn,there was a backlash that valued _________________ over ______________.​

Accepted Answer

A) ​domestic economic growth; foreign affairs 
B) ​jobs for the unemployed; debt reduction 
C) ​tax cuts for the wealthy; tax relief for the middle class 
D) ​the financial services industry; the automobile industry 
E) ​debt reduction; jobs for the unemployed 
A) ​domestic economic growth; foreign affairs 
B) ​jobs for the unemployed; debt reduction 
C) ​tax cuts for the wealthy; tax relief for the middle class 
D) ​the financial services industry; the automobile industry 
E) ​debt reduction; jobs for the unemployed

Question 11

By comparison with most other democratic countries,the tax burden on American citizens is higher than ____________ other countries' citizens.​

Accepted Answer

A) ​almost all 
B) ​about three-fourths 
C) ​about half of 
D) ​about one-fourth 
E) ​almost no 
A) ​almost all 
B) ​about three-fourths 
C) ​about half of 
D) ​about one-fourth 
E) ​almost no

Question 12

The simultaneous occurrence of slow growth,unemployment,and inflation is referred to as ____________.

Accepted Answer

A) depression 
B) stagflation 
C) recession 
D) authorization 
E) monetarism 
A) depression 
B) stagflation 
C) recession 
D) authorization 
E) monetarism

Question 13

The idea of tax cuts for the rich that will then "trickle down" to working people in the form of additional jobs and income,is consistent with

Accepted Answer

A) Keynesian economics. 
B) the Milton Friedman hypothesis. 
C) the aggregate demand hypothesis. 
D) supply-side economics. 
E) None of these choices is true. 
A) Keynesian economics. 
B) the Milton Friedman hypothesis. 
C) the aggregate demand hypothesis. 
D) supply-side economics. 
E) None of these choices is true.

Question 14

Explain the difference between laissez-faire economics and Keynesian economics.

Accepted Answer

Laissez-faire economics is a hands-off a

Question 15

Spending for national defense reached its highest level as a percentage of the budget in the

Accepted Answer

A) 1940s. 
B) 1950s. 
C) 1960s. 
D) 1980s. 
E) 2000s. 
A) 1940s. 
B) 1950s. 
C) 1960s. 
D) 1980s. 
E) 2000s.

Question 16

Market economies are loosely called

Accepted Answer

A) capitalist economies. 
B) monetarist models. 
C) command economies. 
D) planning models. 
E) competition constructs. 
A) capitalist economies. 
B) monetarist models. 
C) command economies. 
D) planning models. 
E) competition constructs.

Question 17

Describe the difference between mandatory and discretionary spending,provide some examples of each,and explain ​how these categories of spending impact budgeting decisions made by Congress.

Accepted Answer

Mandatory spending refers to government

Question 18

In 2011,under pressure from the tea party movement,congressional Republicans opposed

Accepted Answer

A) voting for final passage of Obama's health care law. 
B) the TARP bill providing emergency funding to Wall Street. 
C) raising the federal debt ceiling. 
D) funding for the Internal Revenue Service. 
E) emergency foreign aid to the governments of Spain, Greece, and Portugal. 
A) voting for final passage of Obama's health care law. 
B) the TARP bill providing emergency funding to Wall Street. 
C) raising the federal debt ceiling. 
D) funding for the Internal Revenue Service. 
E) emergency foreign aid to the governments of Spain, Greece, and Portugal.

Question 19

The Budget and Accounting Act of 1921 placed the responsibility for preparing the federal budget in the hands of

Accepted Answer

A) Congress. 
B) the Federal Reserve Board. 
C) the Treasury Department. 
D) the Council of Economic Advisers. 
E) the president. 
A) Congress. 
B) the Federal Reserve Board. 
C) the Treasury Department. 
D) the Council of Economic Advisers. 
E) the president.

Question 20

In contrast to its normal practice,in 2014 the Fed seemed more concerned about ___________ than about ______________.​

Accepted Answer

A) ​persistent unemployment; inflation 
B) ​corporate profits; job growth 
C) ​inflation; persistent unemployment 
D) ​the fed funds rate; mortgage interest rates 
E) ​politics; policy 
A) ​persistent unemployment; inflation 
B) ​corporate profits; job growth 
C) ​inflation; persistent unemployment 
D) ​the fed funds rate; mortgage interest rates 
E) ​politics; policy

Describe some of the ways that the Federal Reserve Board arguably affects the nation's economy as much as the president can.

Which of the following taxes is not a major source (as in over 10 percent)of the federal government's revenue?

The Federal Reserve can increase the money supply in all but which of the following ways?

If a policy rationale and the political will were present,___________ could eliminate expensive federal entitlement programs.

When asked in a recent national poll whether federal spending should be "increased,decreased or kept about the same" for eighteen different purposes,respondents said that every category of spending should be maintained or increased except ____________________.

Describe President George W.Bush's election tax pledges,and what happened to budget deficits during Bush's presidency.

Developing budgets by using last year's budget as the base and adding an amount to cover the increased costs of doing business (inflation)and any new programs is called

The text suggests that no one in Congress is responsible for the budget as a whole because

According to the text,_____________ have historically been most favored by America's tax policies.

The text observes that in the aftermath of the stimulus passed in response to the 2008 economic downturn,there was a backlash that valued ___ over .

By comparison with most other democratic countries,the tax burden on American citizens is higher than ____________ other countries' citizens.

The simultaneous occurrence of slow growth,unemployment,and inflation is referred to as ____________.

The idea of tax cuts for the rich that will then "trickle down" to working people in the form of additional jobs and income,is consistent with

Explain the difference between laissez-faire economics and Keynesian economics.

Spending for national defense reached its highest level as a percentage of the budget in the

Market economies are loosely called

Describe the difference between mandatory and discretionary spending,provide some examples of each,and explain how these categories of spending impact budgeting decisions made by Congress.

In 2011,under pressure from the tea party movement,congressional Republicans opposed

The Budget and Accounting Act of 1921 placed the responsibility for preparing the federal budget in the hands of

In contrast to its normal practice,in 2014 the Fed seemed more concerned about _ than about ____.

Freedom, Order, or Equality

Majoritarian or Pluralist Democracy

The Constitution

Federalism

Public Opinion and Political Socialization

The Media

Participation and Voting

Political Parties

Nominations, Elections, and Campaigns

Interest Groups

Congress

The Presidency

The Bureaucracy

The Courts

Order and Civil Liberties

Equality and Civil Rights

Policymaking and Domestic Policy

Filters

Exam 17: Economic Policy

Describe some of the ways that the Federal Reserve Board arguably affects the nation's economy as much as the president can.

Which of the following taxes is not a major source (as in over 10 percent)of the federal government's revenue?

The Federal Reserve can increase the money supply in all but which of the following ways?

​If a policy rationale and the political will were present,___________ could eliminate expensive federal entitlement programs.

When asked in a recent national poll whether federal spending should be "increased,decreased or kept about the same" for eighteen different purposes,respondents said that every category of spending should be maintained or increased except ____________________.

Describe President George W.Bush's election tax pledges,and what happened to budget deficits during Bush's presidency.

Developing budgets by using last year's budget as the base and adding an amount to cover the increased costs of doing business (inflation)and any new programs is called

The text suggests that no one in Congress is responsible for the budget as a whole because

​According to the text,_____________ have historically been most favored by America's tax policies.

The text observes that in the aftermath of the stimulus passed in response to the 2008 economic downturn,there was a backlash that valued _________________ over ______________.​

By comparison with most other democratic countries,the tax burden on American citizens is higher than ____________ other countries' citizens.​

The simultaneous occurrence of slow growth,unemployment,and inflation is referred to as ____________.

The idea of tax cuts for the rich that will then "trickle down" to working people in the form of additional jobs and income,is consistent with

Explain the difference between laissez-faire economics and Keynesian economics.

Spending for national defense reached its highest level as a percentage of the budget in the

Market economies are loosely called

Describe the difference between mandatory and discretionary spending,provide some examples of each,and explain ​how these categories of spending impact budgeting decisions made by Congress.

In 2011,under pressure from the tea party movement,congressional Republicans opposed

The Budget and Accounting Act of 1921 placed the responsibility for preparing the federal budget in the hands of

In contrast to its normal practice,in 2014 the Fed seemed more concerned about ___________ than about ______________.​

Freedom, Order, or Equality

Majoritarian or Pluralist Democracy

The Constitution

Federalism

Public Opinion and Political Socialization

The Media

Participation and Voting

Political Parties

Nominations, Elections, and Campaigns

Interest Groups

Congress

The Presidency

The Bureaucracy

The Courts

Order and Civil Liberties

Equality and Civil Rights

Policymaking and Domestic Policy

Filters

If a policy rationale and the political will were present,___________ could eliminate expensive federal entitlement programs.

According to the text,_____________ have historically been most favored by America's tax policies.

The text observes that in the aftermath of the stimulus passed in response to the 2008 economic downturn,there was a backlash that valued ___ over .

By comparison with most other democratic countries,the tax burden on American citizens is higher than ____________ other countries' citizens.

Describe the difference between mandatory and discretionary spending,provide some examples of each,and explain how these categories of spending impact budgeting decisions made by Congress.

In contrast to its normal practice,in 2014 the Fed seemed more concerned about _ than about ____.