order to slow down the economy and control inflation. In a Monopoly game with less money floating around the board, for example, players will pay less money when buying properties from other players.

On the larger scale of a national economy, less money usually leads to an economic slowdown. When less money is available, interest rates tend to increase-the cost of money increases-and it becomes more expensive to borrow. If it costs businesses and consumers more to borrow money, they will be less inclined to increase spending. In this way, control of the money supply allows a central bank to reduce inflation.

The money supply can also be increased to stimulate economic activity. If the players in a Monopoly game are given more than two hundred dollars for passing Go-five hundred dollars, say-the results are predictable: the "economy" speeds up and players start buying and selling at higher and higher prices. Increasing the money supply usually results in rapid growth and inflated prices.

COMPREHENSION CHECK

Exercise 1. Agree or disagree to the following statements. Begin your sentences with the following phrases: I think so. Yes, it’s really so. I’m afraid, it’s wrong. I can’t agree.

1.Every economy in the world is controlled by its supply of money.

2.A modern economy is not based on the use of money.

3.Each country’s money supply determines how quickly the economy can grow.

4.If the central bank increases the money supply consumers and businesses have less money to spend on goods and services.

5.Control of the money supply doesn’t allow a central bank to reduce inflation.

Exercise 2. Join the suitable parts of the sentences.

INCREASE YOUR VOCABULARY

Exercise 1. Match the synonyms.

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7.easy-to access money g. high-powered money

h.investment

LANGUAGE ACTIVITY

Exercise 1. Insert articles where necessary.

1.Every economy in … world is controlled by its supply of … money.

2.In … Monopoly game … players are provided with Monopoly money for buying and selling houses, hotels and property.

3.Each country’s money supply determines how quickly … economy can grow.

4.… central banks usually limit money supply growth in order to slow down … economy and control … inflation.

5.Less money usually leads to … economic slowdown.

Exercise 2. Insert prepositions (of, for, in, at) where necessary.

1.Businesses and individuals have money … their disposal.

2.Control … the money supply allows a central bank to reduce inflation.

3.People buy and sell goods … higher and higher prices.

4.Increasing the money supply usually results … rapid growth and inflated prices.

5.Currencies are used … buying goods and services.

Exercise 3.

a) Study using “make” and “do”.

“Make” or “do”? In some contexts these two words have a similar meaning. However, there is a rule which says that “make” usually carries the idea of creation, construction.

Example: – Marry made this dress herself.

–This device was made by two students in one of the laboratories of the University.

–Second-year students will make experiments next year.

As for “do”, it is usually associated with work, particular activity. Example: – Have you done your homework?

–We don’t do aerobics this year.

–He plans to do business.

However, there are many exceptions to these rules and specific uses of these verbs:

–to make a decision

–to make a mistake

–to make entry

–to make a device

but:

–to do a service

–to do subjects

–to do a favour

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–to do without

–to do one’s best

b) Now cross out incorrect variant:

1.My mother doesn’t do/make housework.

2.Did he do/make many mistakes?

3.Every child must do/make his room.

4.Will you do/make a cup of coffee?

5.I will do/make all my best to help you.

6.I’d like to do/make you an offer.

7.Will you do/make me a favour and pass the bread?

8.My mother is going to do/make a cake for your birthday.

9.Now I can’t do/make without my computer.

Exercise 4. Translate the sentences paying attention to the meaning of the verbs

“to cause”, “to force”, “to make”.

Remember:

the verbs “to force”, “to cause”, “ to make” may have the meanings “заставлять”, “вынуждать”and are used both in the Active and the Passive Voices. Don’t forget the meaning of the verb “make” – “делать”

1.What caused your anxiety?

2.What made the plants die?

3.You’ve caused much trouble to your parents.

4.They made me repeat the story. I was made to repeat the story.

5.The fire was caused by an electrical fault.

6.This film always makes me cry.

7.He claims that police officers forced him to sign a confession.

8.When the banks are forced to cut back lending, the economy slows.

Exercise 5. State the function and translate the verb "to be" according to the list given below:

a.смысловой глагол

b.вспомогательный глагол, образующий страдательный залог

c.входит в состав общепринятых выражений и не переводится

d.глагол-связка

e.that is = то есть

f.вспомогательный глагол, образующий группу продолженных времён

g.to be to = must

1.The delegation is at the plant now.

2.These questions were discussed at our meeting.

3.Trade blockades are due to the fact of violating human rights or international treaties.

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4.Why is it difficult for scientists to compare different economies?

5.The problem is that local producers rarely improve their products if they are protected by trade barriers.

6.This occurs when an impurity atom has acceptor properties, that is, can attract electrons.

7.If we are to achieve the aim we must confine our attention to one point only.

8.A government’s budget deficit is the amount by which government expenditures exceed tax revenues.

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