What happens if the supply of a product goes down (i.e. game consoles become rare or shows become rare) and The Fed increases the supply of money

Rolling into a store with a wheel barrow full of money due to hyperinflation has happened in modern history.

A wheelbarrow full of money is _____

Germany in the 1920s and modern nations in Africa have experienced hyper inflation.

Slow and steady inflation is accetpable.

Inflation is better than deflation.

Which is correct about spending in the economy?

Which is correct about spending in the economy?

banks loan MORE ► people spend MORE ► firms hire MORE ► people spend MORE .....which of the following will NOT occur

banks loan LESS ► people spend LESS ► firms hire LESS ► people spend LESS

Who loans the money to banks?

How does The Fed increase the supply of money in the economy?

How does The Fed restrict the supply of money in the economy?

What mechanism does The Fed use to loan money to banks?

amount money grows over time (mainly earned via loaning or saving)

amount of money the bank must keep in its vaults

Banks borrow MORE at low interest rates because they do not have to pay back as much money.

Which is incorrect?

Which is incorrect?

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