Social Psychology
Monetary and Fiscal Policy:
Crash Course U.S. Government #48
Available at or just youtube/google “Crash Course US Government 48”
1. Monetary policy is the way the government ____________
the amount of _____________ in circulation in the nation’s
economy. Controlling the money supply is the primary task
of the ___________________________________________.
a. The Fed has two primary tasks: to control ___________
and to encourage ______________________________.
The most important thing the Fed does is loan money
to other banks and set ___________________________.
b. What is the bank reserve requirement? What is its purpose?
2. Inflation is a general __________________________ that can be caused by a number of
things, but one of them is the _______________________________________________.
If there’s more money around, there’s more than can be spent and this makes it possible for prices to go up.
3. Fiscal policy refers to the government’s ability to _________
_____________ and spend the money it raises.
a. Why do we continue to have budget deficits?
b. What’s the basic idea behind supply side economics?
c. Certain items in the federal budget that must be spent because they are written into law by Congress are called _______________________, or mandatory spending.
i. What are the three reasons why it is unlikely the government will ever spend less on Social Security and Medicare?
d. By far the largest chunk of government spending goes into _______________, but the next largest item is ____________________________________ (Medicaid).
a.
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