Term
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Definition
| an element of fiscal policy that changes automatically as income changes |
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Term
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Definition
| a drop in consumption or investment spending caused by government spending |
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Term
| discretionary fiscal policy |
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Definition
| changes in government spending and taxation that are aimed at achieving a policy goal |
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Term
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Definition
| a tax whose rate rises as income rises |
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Term
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Definition
| income or wealth taken from one person or group and given to a different person or group |
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Term
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Definition
| a general sales tax collected at each stage of production |
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Term
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Definition
| an artificial unit of account that is an average of the values of several national currencies |
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Term
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Definition
| available savings that are lent to borrowers to spend |
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Term
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Definition
| the use of foreign money as a substitute for domestic money when the domestic economy has a high rate of inflation |
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Term
| deposit expansion multiplier |
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Definition
| the reciprocal of the reserve requirement |
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Term
| Eurocurrency market or offshore banking |
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Definition
| the market for deposits and loans generally denominated in a currency other than the currency of the country in which the transaction occurs |
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Term
| European Currency Unit (ECU) |
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Definition
| a unit of account formerly used by western European nations as their official reserve asset |
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Term
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Definition
| the cash reserves beyond those required, which can be loaned |
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Term
| Federal Deposit Insurance Corporation (FDIC) |
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Definition
| a federal agency that insures deposits in commercial banks |
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Term
| fractional reserve banking system |
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Definition
| a system in which banks keep less than 100 percent of their deposits available for withdrawal |
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Term
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Definition
| an international informal financial market used by Muslims |
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Term
| international banking facility (IBF) |
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Definition
| a division of a U.S. bank that is allowed to receive deposits from and make loans to nonresidents of the United States without the restrictions that apply to domestic U.S. banks |
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Term
| international reserve asset |
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Definition
| an asset used to settle debts between governments |
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Term
| international reserve currency |
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Definition
| a currency held by a government to settle international debts |
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Term
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Definition
| an asset that can easily be exchanged for goods and services |
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Term
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Definition
| the financial assets that are the most liquid |
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Term
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Definition
| anything that is generally acceptable to sellers in exchange for goods and services |
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Term
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Definition
| the cash reserves (a percentage of deposits) a bank must keep on hand or on deposit with the Federal Reserve |
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Term
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Definition
| a rotating savings and credit association popular in developing countries |
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Term
| special drawing right (SDR) |
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Definition
| "a composite currency whose value is the average of the values of the U.S. dollar, the euro, the Japanese yen, and the U.K. pound" |
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Term
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Definition
| a checking account at a bank or other financial institution that can be drawn on to make payments |
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