Title: QUIZ: Inflation -- The Federal Reserve and You
Course: Kelly's Copy-Export Course > Section: Inflation -- The Federal Reserve and You

Q: Inflation occurs when the prices of ______________ and _______________ across the ______________ rise.
- goods; services; economy
- goods; stocks; economy
- services; capital; market
- stocks; services; market
A: goods; services; economy

Q: One potential cause of inflation is
- too little lending by banks.
- too much saving by consumers.
- too much spending chasing too few goods.
- too little spending on goods and services by the government.
A: too much spending chasing too few goods.

Q: An inflation shock, such as the oil embargo in 1973, can ultimately lead to
- lower inflation.
- higher inflation.
- less disinflation.
- more disinflation.
A: higher inflation.

Q: Long-run sustained inflation is primarily caused by
- too little lending by banks.
- excessive government spending.
- too little spending by consumers.
- excessive growth in the money supply.
A: excessive growth in the money supply.

Q: In what way can the Federal Reserve help maintain price stability?
- Print and circulate less currency
- Control the growth of the money supply
- Limit how many new banks open each year
- Loosen regulations on bank lending practices
A: Control the growth of the money supply