Puente Valley
Today 8:39 AM
Policy
Monetary and fiscal policy changes have a ripple effect
within the economy. Each of the following excerpts tells one
part of the "story" of how fiscal policy impacts those within
the economy, Number each part of the story (1-7) according
o what would happen in sequence.
Stor
yl
A stay at home husband is delighted to receive the tax-rebate check. He spends the money
by putting it toward the down paylap on a new car his wife desperately needs to get to
work
A restaurant owner discusses how business at the restaurant has increased. The increased
revenue/along with the tax cut to businesses, provides the incentive she needed to expand
the business. She decides to build 3 more stores.
A car salesman notices that car sales have picked up, and he, along with all the other car
salesman he knows, have enjoyed a pay increase as a result. He will use the increased
income to buy a new computer for the home.
The President announces that the tax cut to households and businesses he has been
promising was approved by the House and Senate and will be put into effect immediate
via tax-febate checks
A computer store manager sees that computer sales have increased recently and the store
has been busier. She needs to hire more workers to handle the additional consumer
demand
An unemployed computer technician gets hired at the computer store and is happy to be
working again. He celebrates his re-entrance into the workforce by taking his family out to
dinner
A laid-off construction worker gets called back to work to build a new restaurant. After
working for several months, be is able to save enough to take a trip to Hawaii.
