Genius

This economic stimulus package is an example of

This economic stimulus package is an example of 


1. “Bonds, however, turned up on news of strong tax revenue. It is now projected that there could be a budget surplus of as much as $39 billion, much higher than the $18 billion forecast." From this information it would be reasonable to conclude that 
a) interest rates should rise b) the supply of bonds should fall 
c) the money supply should decrease d) government spending should increase by $21b 
2. “If the economy is picking up and the Fed is printing money, it seems to me that the market has good reason to worry.” The market is worried because 
a)	interest rates should fall 
b)	bond prices should fall 
c)	taxes should rise 
d)	the government deficit should increase 

“The White House budget director said that the $787 billion economic stimulus package (increasing the 2009 estimated deficit to $1.84 trillion, at 12.9% of GDP the largest since 1945, combined with the Fed cutting the target interest rate for overnight loans between banks, will help …..” The next two questions are based on this clip. 
3. The interest rate for overnight loans is called 
a)	The discount rate 
b)	The bank rate 
c)	The federal funds rate 
d)	The overnight cash rate. 
	
4. This economic stimulus package is an example of 
a)	fiscal policy 
b)	monetary policy 
c)	a balanced-budget multiplier 
d)	the money multiplier 

5. “In an endeavor to minimize the worst of the 2008 downturn, governments worldwide are running up huge debts.” This policy is called 
a) fiscal policy b) monetary policy c) debt policy d) interest rate policy



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10 May 2016

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  1. Genius

    This economic stimulus package is an example of

    This economic stimulus package is an example of This economic stimulus packa ****** ******
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