Term
| Presidents economic advisors---- |
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Definition
| council of economic advisors |
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Term
| Discretionary Fiscal Policy---- |
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Definition
| Changes in taxes and gov expenditures made by congress |
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Term
| Expansionary Fiscal Policy--- |
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Definition
| Designed to expand GDP by increasing gov spending and decreasing taxes |
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Term
| Contractionary Fiscal policy---- |
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Definition
| designed to fight demand pull inflation decreasing gov spending increasing taxes |
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Term
| If you want small gov conservatives --- |
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Definition
| tax cuts during recession; less gov spending during inflation |
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Term
| If you want large gov liberal--- |
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Definition
| gov spending increase during recession; increase taxes during inflation |
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Term
| End recession and stimulate output--- |
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Definition
| reduce tax rates on income |
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Term
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Definition
| require no action by congress (eg. Tax brackets), but this can only partially offset fluctuations |
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Term
| Political business cycle--- |
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Definition
| politicians using policies to increase employment during election |
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Term
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Definition
| increase interest rate and decrease investment |
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Term
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Definition
| all deficits minus surpluses |
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Term
| Money is a social ideal--- |
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Definition
| whatever performs function of money is said to be money |
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Term
| Money is a medium of exchange --- |
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Definition
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Term
| Money as a unit of account--- |
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Definition
| monetary unit for measuring |
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Term
| Money is a store of value--- |
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Definition
| way to keep wealth and spend in future |
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Term
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Definition
| coins, paper currency, and checkable deposits |
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Term
| Money supply backed by--- |
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Definition
| government ability to stabilize dollar (control the supply of money) |
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Term
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Definition
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Term
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Definition
| Money Maturity deposit asset |
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Term
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Definition
| based on fractional reserves |
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Term
| Federal Reserve System--- |
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Definition
| created in 1913, controls the money supply |
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Term
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Definition
| Consists of 7 board of governors, the president of the NY Federal bank, 4 other federal reserve presidents (1 year intervals) |
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Term
| Economic Policy of the Federal Reserve--- |
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Definition
| controlling supply of money, an independent agency |
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Term
| Tools of monetary policy--- |
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Definition
| reserve rate, discount rate, open-market operations |
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Term
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Definition
| consists of deliberate changes in government spending and tax collections designed to achieve full employment, control inflation, and encourage economic growth |
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Term
| non-discretionary Fiscal Policy |
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Definition
| changes that occur without congressional action |
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Term
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Definition
| amount on dollar bill doesn’t actually mean the piece of paper is worth that money |
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Term
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Definition
| amount of actual money in the banks |
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Term
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Definition
| found bu minusing actual reserve by recquired reserve |
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Term
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Definition
| amount of money that needs to be owned by the banks (cannot lend more than this amount) |
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Term
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Definition
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Term
| Which monetary policy is used the least |
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Definition
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