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49 Cards in this Set
- Front
- Back
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central bank
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a nations main monetary authority
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who does the fed provide banking for?
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the national gov./private banks
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what is the official paper currency of the US called?
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federal reserve note
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the answer to #4 is
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prices decrease
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what are the two basic tools that the federal gov. uses to influence the econ.?
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taxation and gov. spending
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why is fiscal policy described as countercyclical
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its goal is to smooth out the peaks and troughs of the business cycle
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use of gov. revenue and spending to try to stabilize the econ. by influencing aggregate demand?
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demand side fiscal policy
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what does a raffer curve seek to graphically represent
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how tax cuts affect tax revenue at various rates
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result when supply side economics was practiced in the US during the 1980's?
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many of the predictions were fulfilled but savings did not increase
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if the gov. spends more than it takes in, what is it called?
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budget deficit
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what is a tax base
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a form of wealth that is subject to taxes
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what is the main effect of transfer payments on the economy?
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income redistribution
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what kind of income tax do most states have?
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most states have a progressive individual income
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what happens to people who are unemployed for long periods of time?
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lose faith in their ability to get a job
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what is the percentage of people living in households that have incomes below the poverty threshold called?
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poverty rate
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what do we call the health insurance program for seniors that is part of social security?
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Medicare
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the answer to 17 is
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inflation rate
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how do producers react to cost-push inflation?
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raise prices to maintain profits
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what is the answer to 19?
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gross domestic product
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what do we call GDP that is stated in the price levels for the year in which GDP is measured?
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nominal GDP
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what do we call the income received by a country's people from all sources in a given period?
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Personal income
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what triggered the contraction of the 1970's?
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oil embargo of 1973
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what is the idea that national wealth comes through exporting more goods than a country imports?
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mercantilism
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answer to 24
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productivity
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what is the difference between savings and investments?
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investments are savings put to use
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what is a financial intermediary?
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an institution that helps to bring savers, borrowers, and financial assets together
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what two categories are used to classify financial asset markets?
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time and resalability
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what should an investor do before choosing among investment options?
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determine an investment objective
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what is diversification?
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makes several different types of investments to reduce risk
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how are stick prices determined?
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the market forces of supply and demand
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what are economic properties of money?
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scarcity
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who created the First Bank of the US?
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Alexander Hamilton
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what are wild cat banks?
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in remote areas that issued bank notes of questionable value
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what led to the system of national banks and the issuing of a national currency?
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national banking act of 1863
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what is the main difference between a credit union and a bank?
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credit unions have membership requirements
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define Fractional Banking?
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easy money policy
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what is the building shown in this cartoon?
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capital building
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who are the people in this carton most likely to be?
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members of congress
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40
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40%
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41
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australia
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42
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five
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43
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4
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44
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20%
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45
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26.8%
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46
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60%
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47
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US
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48
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general motors
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49
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Bethlehem Steel
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50
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it listed several steel companies
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