Question

on your own paper, write the term from the word bank that correctly completes each sentence.
word bank: diplomacy, constituent, lobbyist, special interest group, isolationism, interventionism, imperialist, fiscal policy, monetary policy, factor of production, monopoly, competition, surplus, deficit, national debt, expansionary, contractionary

1. congress agreed to incur a(n) ______ to keep important programs funded.
2. president theodore roosevelt argued that the united states should lead with ______ but be ready to use force if necessary.
3. costs turned out to be less than expected, resulting in a budget ______
4. sheep pastures are an important ______ in the textile industry.
5. the representative’s office tried to answer letters from every ______
6. the united states’ ______ was gradually relaxed in favor of a more proactive foreign policy stance.
7. one main mission of the federal reserve is to shape ______
8. the federal reserve’s ______ policy promoted employment but caused prices to rise.
9. much of the ______ is held by private individuals and firms who hold treasury bonds.
10. advocates of free market systems argue that ______ between firms benefits consumers.
11. after the spanish - american war, some government critics said that in becoming a(n) ______ nation, the united states would betray its founding principles.
12. the ______ prepared reports showing the benefits of policies and legislation that favored her industry.
13. the ______ hired people to advocate for its interests in washington.
14. the federal reserve attempted a(n) ______ policy to ease rapid inflation.
15. the conglomerate held a(n) ______ on the production of oil in the united states.
16. for many historians, the monroe doctrine marks a step toward ______ in u.s. history.
17. taxing and spending are the two most basic components of ______

Explanation:

1. When a government spends more than it takes in to fund programs, it incurs a deficit.
2. Theodore Roosevelt's foreign policy emphasized leading with peaceful negotiation (diplomacy) while being ready for force.
3. When costs are lower than expected, the result is a budget surplus (more funds than planned).
4. Sheep pastures are a resource (land) used in textile production, so they are a factor of production.
5. Representatives answer communications from the people they represent, called constituents.
6. Isolationism is a non-proactive foreign policy; the U.S. moved away from this to a more active stance.
7. The Federal Reserve's core role is to set and implement monetary policy (controlling the money supply).
8. Expansionary monetary policy boosts employment but can increase inflation.
9. The national debt is made up of Treasury bonds held by individuals, firms, and other entities.
10. Free market advocates argue that competition between firms leads to better prices/options for consumers.
11. The Spanish-American War led to U.S. territorial acquisitions, which critics called imperialist (extending power over other nations).
12. A lobbyist is a person who prepares reports and advocates for policies favorable to a specific industry.
13. A special interest group is an organization that hires people to advocate for its policy goals in government.
14. Contractionary policy is used by the Fed to slow down rapid inflation by reducing the money supply.
15. A monopoly is exclusive control over the production or supply of a good, like oil production.
16. The Monroe Doctrine asserted U.S. influence in the Americas, marking a shift toward interventionism in foreign affairs.
17. Fiscal policy refers to government actions related to taxing and spending to influence the economy.

Answer:

1. deficit
2. diplomacy
3. surplus
4. factor of production
5. constituent
6. isolationism
7. monetary policy
8. expansionary
9. national debt
10. competition
11. imperialist
12. lobbyist
13. special interest group
14. contractionary
15. monopoly
16. interventionism
17. fiscal policy