Mastery Assess It 7 E

14. Today, power over the American money supply is vested through _____.

A.	the Second Bank of the United States
B.	the First Bank of the United States
C.	the Federal Reserve
D.	state-run banks

15. Which of the following is true of supply-side economics?

A.	It tends to promote policies that increase government regulations and provide tax cuts to producers.
B.	It tends to promote policies that decrease government regulations and provide tax cuts to producers.
C.	It tends to promote policies that decrease government regulations and provide tax increases for producers.
D.	It tends to promote income equality as measured by the Lorenz curve.

16. Which of the following is an example of both offshoring and outsourcing?

A.	An American motorcycle company hires a Japanese company to make tires for its motorcycles.
B.	An American automaker in Detroit hires a company in Indiana to make a specific part for its cars.
C.	An American company opens a call center in India for American customers.
D.	A Chinese company opens an office in California and hires American engineers to design new aircraft.

17. Which of the following exchanges would be filed under the capital account?

A.	money made from foreign businesses on U.S. soil
B.	taxes raised by the U.S. from foreign nationals
C.	net transfers
D.	portfolio investments