V. Translate the following text into Ukrainian and do the tasks to it. Ever since the days of the Great Depression, the federal government has sought to stabilize the economy.

Ever since the days of the Great Depression, the federal government has sought to stabilize the economy.

To achieve these goals the government relies upon two sets of «tools» or strategies: fiscal policy and monetary policy.

Fiscal Policy. Fiscal policy is applied by changing the level of tax receipts relative to federal spending. It is the responsibility of the President and Congress because they control taxing and spending.

When taxes are reduced, individuals and business firms will have more money available to spend for the things they want. As business and consumer spending begins to increase, the economy will enter the expansion phase. If taxes are increased consumers and business would have less to spend. This would create a contraction in the total demand for goods that should reduce inflation.

Fiscal Policy Has Its Critics: Many economists feel that when properly applied, fiscal policies can provide effective tools with which to fight recession and inflation. Others, however, believe fiscal policy solutions have several serious drawbacks.

— When government reduces taxes to fight a recession, it often creates a budget deficit. That is its revenues will be less than its expenditures, and the government's debt will increase. When taxes are reduced, the government can still spend because it can borrow or print money.

If the government chooses to borrow from the public to offset a tax reduction, the money it borrows cannot be spent by the lenders.

— The federal government can also finance its debts by printing money.

Unfortunately, such increases in the money supply tend to fuel inflation by pushing up prices. For that reason a number of economists are opposed to this strategy.

Fiscal policies must be timed so that they are applied at the right moment.

Monetary Policy. Monetary policy refers to regulating the supply of money as a way of stabilizing the economy. Monetary policy is the responsibility of the Federal Reserve System.

There is a direct relationship between the amount of money in circulation and the level of business activity. When the mo­ney supply is increased, consumer spending and business spending tend to increase with it. It follows that in time of contraction and recession, an increase in the money supply will help to bring about economic recovery. When the opposite situation prevails and the booming economy is pushing up prices in an inflationary spiral, a reduction in the money supply will serve to reduce demand and lower prices (pp. 139—147).

VI. Give English equivalents of the following:

підвищувати податки випускати гроші

зменшувати податки попит на товари

стабілізувати економіку дефіцит бюджету

контролювати податки та витрати спад виробництві

застосовуватися в потрібний момент

змінювати рівень грошових надходжень за рахунок податків

VII. Fill in the blanks with appropriate words:

1. Fiscal policy is applied by changing the level of tax receipts relative to....

2. When taxes are..., individuals and business firms will have more money available to spend for the things they want.

3. When properly applied,... can provide effective tools with which to fight recession and....

4. Fiscal policy solutions have several serious....

5. When government reduces taxes to fight a recession, it often creates a....

6. The federal government can also finance its debts by printing....

7. Fiscal policies must be... so that they are applied at the right moment.

8. There is a direct relationship between the amount of money in... and the level of business activity.

(reduced; fiscal policies; inflation; federal spending; timed; budget deficit; money; drawbacks; circulation.)

VIII. Translate into English:

1. Економісти шукають шляхів, щоб стабілізувати еко­номіку. 2. Для того щоб досягти мети стабілізації економіки, уряд звертається до двох стратегій: фіскальної та грошової політики. 3. Коли податки зменшуватимуться, фірми та при­ватні особи матимуть у розпорядженні більше грошей, щоб витрачати їх на речі, які вони хочуть придбати. 4. Деякі економісти стверджують, що фінансова політика має кілька серйозних недоліків. 5. Коли уряд зменшує податки, він може створити дефіцит бюджету. 6. Дефіцит бюджету озна­чає, що прибутки будуть меншими за витрати, і заборго­ваність уряду зросте. 7. Уряд може покривати дефіцит бюджету, роблячи позички або випускаючи нові гроші. 8. Прикро, що збільшення грошової маси є поштовхом до інфляції. 9. Існує прямий зв'язок між наявною в обігу кількістю грошей та рівнем виробництва.