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9 Cards in this Set
- Front
- Back
Sherman Antitrust Act, 1890 |
-Prohibits certain business activities that federal government regulators deem to be anti-competitive -requires the federal government to investigate and pursue trusts, companies, and organizations suspected of violations. -purpose was to create a pro-competition law for consumers and keep prices low. |
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Examples of Sherman Anti-trust Act |
1. Standard Oil, 1890: Beginning of act -Rockefeller broke up the company into 34 companies now known as Exxon, Chevron Mobile. 2. AT & T, 1984: Broke into 5 RBOCS's and bought Bellsouth and became bigger 3. Microsoft, 2000: Judge ordered that Microsoft be broken up into 2 companies; overnight judge change mind. 4. Atlanta Gas Light, 1998: Only gas company and introduced concept of resellers. -still receives payments from everyone though not as much. resellers creates competition |
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Glass-Steagall Act
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-also known as the Banking Act of 1933 -prohibits commercial banks from engaging in the investment business. -enacted as an emergency response to the failure of nearly 5,000 banks during the Great Depression. |
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Clayton Antitrust Act of 1914 |
-provides further clarification and substance to Sherman Antitrust Act. -attempts to prohibit certain actions that lead to anti-competitiveness -supplements existing laws against unlawful restraints and monopolies. |
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Competition law |
A law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. |
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Why is the economy bad? |
-We have not had 3% of GDP growth in 8 years, very anemic recovery very week. -Unemployed rate touted at 4% but is really 15-18%. -Currently in 7 wars. -allies have joined the AIIB bank. -Interest rate is only .50 % as of 2015. |
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Federal Reserve |
-Two main functions: lender of last resort, monetary policy -Fed wants to maintain a 2% inflation rate -QE2 ($85 billion) two goals: max employment, maintain low inflation. |
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Federal Reserve Act, 1913 |
-created the current Federal Reserve system -established a form of economic stability through the introduction of the central bank. -considered the most influential law concerning the U.S. Financial System. |
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Federal Reserve Reform Act, 1977 |
-made the federal reserve accountable for its actions on monetary and fiscal policy. -explicitly established price stability as a national policy goal. -required quarterly reports to Congress |