Monetary Policy - Captain Fred
Authored by Joanne Beaver
Social Studies
10th Grade
Used 5+ times
AI Actions
Add similar questions
Adjust reading levels
Convert to real-world scenario
Translate activity
More...
Content View
Student View
24 questions
Show all answers
1.
MATCH QUESTION
1 min • 1 pt
How will the new wave of consumer spending affect each of the following items?
Increase in response to consumers
Consumer Spending and Confidence
Decrease because more jobs are created
Business Investment
Increase b/c consumers feel good
Inflation
Increase as prices go up
Unemployment
Answer explanation
As consumers spend more money, they will increase demand. This causes businesses to want to sell more items and they increase their spending. As they make more items, they need to hire more workers. This leads to higher prices and inflation.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In response to the increasing inflation from consumer spending, how should the Fed respond?
Tighten the money supply
Nothing
Loosen the money supply
Answer explanation
The Fed wants to tighten or bring down the money supply when there is inflation.
3.
MATCH QUESTION
1 min • 1 pt
Based on the Fed's reaction to the rising consumer spending, what will happen?
Slows as Fed increases int rates
Business Investment (Bus. Inv.)
May rise b/c of slower Bus. Inv.
Interest rates
Slows b/c of higher borrowing costs
Inflation
Higher as Fed tightens money supply
Unemployment
Slows b/c higher interest rates
Consumer spending
Answer explanation
The Fed will work to increase interest rates in response to inflation. This causes the price to borrow money to go up since higher interest rates cause items to cost more. Both consumers and businesses are affected by the higher interest costs. This will slow business investment and help lead to higher unemployment.
4.
MATCH QUESTION
1 min • 1 pt
How will inflationary winds affect the following items?
Investment is strong
Business Investment
High
Unemployment
Spending is strong
Consumer spending and confidence
Low b/c investment is high
Inflation
Answer explanation
As consumers spend more money, they will increase demand. This causes businesses to want to sell more items and they increase their spending. As they make more items, they need to hire more workers. This leads to higher prices and inflation.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In response to the inflationary winds blowing prices higher, what should the Fed do?
Tighten money supply
Nothing
Loosen money supply
Answer explanation
The Fed wants to tighten or bring down the money supply when there is inflation.
6.
MATCH QUESTION
1 min • 1 pt
What impact will this Fed policy have on the following items?
Slows - interest rates increase costs
Consumer spending
May rise b/c of slower investment
Business Investment
Higher b/c of tighter monetary policy
Inflation
Slows b/c of slower spending
Unemployment
Slows-interest rates make expansion rise
Interest Rates
Answer explanation
The Fed will work to increase interest rates in response to inflation. This causes the price to borrow money to go up since higher interest rates cause items to cost more. Both consumers and businesses are affected by the higher interest costs. This will slow business investment and help lead to higher unemployment.
7.
MATCH QUESTION
1 min • 1 pt
Business Investments slow. What impact will this have on the following?
May begin to slow as spending slows
Business Investment
Begins to rise as business slows
Consumer spending and confidence
Begins to slow as hiring slows
Unemployment
Slows
Inflation
Answer explanation
Businesses lose confidence in sales and consumer spending. They will slow expanding their businesses. This causes work slowdowns and job layoffs leading to higher unemployment. Consumers lose confidence and slow their buying. Less demand leads to a fall in prices and inflation begins to fall.
Access all questions and much more by creating a free account
Create resources
Host any resource
Get auto-graded reports
Continue with Google
Continue with Email
Continue with Microsoft
or continue with
%20(1).png)
Apple
Others
Already have an account?
