24. The standard of living of U.S. citizens has increased dramatically during the history of

the United States as a result of what factors?

a. the growth of the economy and its productivity

b. international trade

c. foreign exchange markets

d. industrial downsizing and restructuring

25. The government raises funds to pay for its activities in all of the following ways except:

a. levies taxes

b. borrows

c. prints money for its own use

d. prints money as a gift to citizens

26. The Fed increasing the money supply to help offset the demand for increased funds to

finance the deficit is called _______.

a. disbursing funds

b. monetizing the debt

c. influencing the money market

d. stimulating the economy

27. How would a massive withdrawal of taxes from the banking system without offsetting

actions impact monetary affairs?

a. the increase in revenue would result in a lower overall tax rate

b. it would aid in the balance between full employment and price stability

c. the decrease in bank deposits would result in a temporary breakdown of the system