1. what is one of the things the federal reserve system does? (1 point)
a. set income tax rates at the federal level
b. influence interest rates
c. decide who can open bank accounts
d. give loans to bank customers

2. how might the government deal with a huge company that has no competitors and is charging
customers high prices?
a. break the company up into smaller competing firms
b. fine the company based on its profits for a given year
c. force the company to pay taxes at a higher rate
d. assign a government agent to observe the company’s leadership

a new administration reforms a state’s tax code. corporate tax was increased by 3%,
allowing the value­added tax on consumer goods to be reduced by 5%. this had no net effect
on the state budget as the two tax changes balanced each other out.
use the passage to answer the question.
3. what is a likely effect of this change in tax policy? (1 point)
a. high-­income people will choose to leave the state.
b. nonprofits will become a larger part of the economy.
c. consumers in the state will choose to buy fewer things.
d. financial institutions will be less likely to invest in the state
five point for each.
i think the answers are
1. d
2. b
3. c