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20 Cards in this Set
- Front
- Back
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the government program of increasing or decreasing government spending to control inflation & unemployment
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Fiscal Policy
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the Federal Reserve Bank program of increasing or decreasing the money supply to control inflation & unemployment.
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Monetary Policy
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the amount of money a bank must keep in its vault or on deposit at the Fed to back up Customers' deposits
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Reserve Requirement
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the rate of interest charged by the Federal Reserve Bank to borrowing banks
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Discount Rate
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the lowest rate of interest that banks offer their best business customers
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Prime Rate
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the belief that high unemployment and inflation can be solved by encouraging people & businesses to produce more.
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Supply-Side Economics
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the idea that government spending and tax cuts help an economy by raising demand
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Demand-Side Economics
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demand-side economics that encourages government action to increase or decrease demand or input
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Keynesian Economics
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British economist who argued that government spending can bring the economy up to its productive capacity ( opposite of Classical Economic Theory)
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John Maynard Keynes
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the idea that every one dollar of government spending creates more than one dollar in economic activity
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Multiplier Effect
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less government spending & higher taxes
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High Inflation
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higher government spending & lower taxes
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High Unemployment
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A New York Economist who believes that fiscal policy & monetary policy cause rather than cure economic problems; he proposes a pure free market economy w/o government interference
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Milton Friedman
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tax dollars received by the government
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government revenue
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an expense
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expenditure
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a financial situation in which spending is less than income or revenues
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budget surplus
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a financial situation in which spending is greater than income or revenues
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budget deficit
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the total amount of money owed by the federal government
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national debt
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unable to pay debts
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bankrupt
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first African-American to be named a member of the Federal Reserve Board, saved much gov't money in the 1960s by discouraging loaning huge sums of money to private corporations at low interest rates.
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Andrew F. Brimmer
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