1. what would most likely happen if congress decreased taxes and increased spending?
economic contraction
economic expansion
economic stability
economic stagnation
2. the federal reserve includes twelve
governing bodies
regional banks
member offices
city officials
3. the country of lilliput has low unemployment and high consumer spending, and small businesses are thriving. however, prices are starting to rise throughout the economy. what should lilliput's government do to prevent inflation from happening?
lower the income tax, which gives citizens less money to spend, and buy services from civilian-owned businesses, which creates more jobs.
lower the income tax, which gives citizens more money to spend, and buy more services from civilian-owned businesses, which creates more jobs.
raise the income tax, which gives citizens less money to spend, and stop buying services from civilian-owned businesses, which eliminates jobs.
raise the income tax, which gives citizens less money to spend, and buy more services from civilian-owned businesses, which creates more jobs.
4. the accumulation of years of spending more money than is collected in revenues over several years creates a budget
debt
deficit
surplus
reversal
5. lowering the discount rate can promote full employment because
employees are more likely to apply for multiple jobs
employees are able to get better offers for hourly wages
companies are more likely to expand and hire more workers
companies are less likely to sign up employees for unemployment insurance