VI. Define the terms:

revenue fiscal policy

receipts monetary policy

inflation budget deficit

recession tax regulating the supply of money

VII. Translate into English:

1. EkohomSctm ujyKafOTb wnsixiB, m,o6 CTa6ini3yeaTn eKO-HOMky. 2. flnn toco mo6 aocnrrn Mern cTa6ini3au.fi' eKOHOMiKH, ypdfl 3BepTaeTbcn p,o ppox CTpaTerin: cpicKanbHoi* Ta rpowoBoT nontTMKH. 3. Konn noflaTKM 3MeHwyBaTHMyTbCH, cbipMM Ta npM-BaTni oco6m MaTMMyTb y po3nopa/;>KeHHi 6inbwe rpoiueM, iu,o6 BHTpanaTtiYx Ha peni, ski bohm xonyTb npnfl6a™. 4. fXemv ettoHOMicTM CTBepflwyioTb, mo cpmaHcoBa nonrrnKa Mae KiribKa cepwo3Hnx HeflOniKiB. 5. Ko/im ypflA 3MeHiijye noAamM, em Mowe CTBOpMTM Aetpiu.nr 6tofl>KeTy. 6. flecpiu.MT 6K>A»teTy 03Ha-Nae, mo npn6yTKH 6yAy?b MemiJMMM 3a Bm-pa™, i 3a6opro-BaHicTb ypnfly 3pocTe. 7. ypflfl Mome noKpnBaTn flec^ium 6ton>KeTy, po6n$WH no3MMKn a6o BMnycKatoHW hobj rpowi. 8. ripuKpo, mo 36inbUjeHHfl rpowoBoi" Macn e nowTOBXOM flo pHcpnflLj,ri". 9. IcHye npnMnPi 3b'a30k mJ>k HanBHOto b o6iry KJnbKicTio rpoLuefi Ta piBHeM Bnpo6HMUjBa.

VIII. Read and dramatize the following dialogue:

A.: Can you tell what times we are living through. As I know

when people speak of prosperity and depression, they

think of things like business cycles. 6.; Yes! The business cycle is the pattern of periodic ups and

downs of business activity. A.: And how does the government try to stabilize the ups

and downs of the economy? B.: In its efforts to stabilize the economy and achieve its goals

the government relies on the fiscal and monetary policy. A.; Do you know anything about fiscal policies? S.: Certainly, I do. Fiscal policies seek to adjust total demand

through the appropriate use of the government's powers

to tax and to spend. Fiscal policy is in the hands of the

President and Congress.

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A,: Then monetary policies must be quite different.

6.: Not exactly. Monetary policies seek to achieve similar

goals by regulating the money supply. Monetary policies

are determined by the Board of Governors of the Federal

Reserve System. A.; And how do fiscal policies influence the events in times of

recession? B-: In times of recession fiscal policies would call for some

combination of tax reductions and increases in government

spending. A.: And what about monetary policies? 6.: Monetary policies in those times would seek to increase

the money supply through strategies such as the increased

purchasing of government securities by the Open Market

Committee, a lowering of discount rate, and a reduction

in the reserve ratio. A.; And what happens in the times of inflation? 8..- In times of inflation both fiscal and monetary policies would

follow an opposite course. A.: Oh! I came to know very much about some things I've

never heard before. Thanks a lot. B.: You're welcome.

IX. Make up your own dialogue using the following expressions:

to stabilize the economy to reduce inflation

to enter the expansion phase to fuel inflation

to fight recession and inflation to increase taxes

to control taxing and spending fiscal policies

to provide effective tools to reduce taxes monetary policies

X. Change the following sentences using the Passive Voice:

Mode!: At that time the government was controlling taxing.

Taxing was being controlled by the government

at that time.

1. They were stabilizing the economy during the last two

years. 2. Congress was reducing inflation the whole year.

3. The President was applying fiscal policy, while they controlled

taxing and spending. 4. They were providing effective tools

to fight recession and inflation. 5. When the government

borrowed money, it was reducing taxes.

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