Unit Five Lesson Fourteen Economics

The possible effect of increased government borrowing on businesses and consumers; by driving interest rates up, high levels of government borrowing may crowd private borrowers out of the lending market

Government spending in excess of what is collected in revenues

A monetary policy designed to accelerate the rate of growth of the money supply in order to stimulate economic growth

Government policy regarding taxing and spending

Central bank policy aimed at regulating the amount of money in circulation

A ripple effect in which a change in spending by one person or business leads to additional changes in spending by another person or business

A combination of economic stagnation—or slowdown—and high inflation; features of stagflation include slow or zero economic growth, high unemployment, and rising prices

A monetary policy designed to slow the rate of growth of the money supply in order to reduce inflation

Which of the following would stimulate the economy?

The headline below indicates which type of policy:

"Fed unleashes another big rate hike in bid to curb inflation"