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31 Cards in this Set

  • Front
  • Back
Banana Republic
Central American country whose government is allowed to stand in power only if it agrees to trade with America on American terms
Cold War
WWIII, MAD, U.S vs. USSR; war in developing world: Korea, Vietnam, and Yom Kippur
Commerce Clause
Congress to regulate interstate commerce
Established by the Truman Doctrine; the US will stop the spread of communism and intervene when it feels a threat
Cuban Missile Crisis
MAD avoided after escalating; each side tried to make the other back down by raising stakes; JFK and the ="bay of pigs": missile gap.
US diplomatic policy based on the relaxation of tension (Nixon's visit to china and the USSR)
Discount Rate
Federal Reserve charges big banks to loan them money
Dual Federalism
Layer cake new deal, federalism; federal>state power
Elastic Clause
Implied (inexplicit) powers given by the constitution; article 1, section 8
Enumerated Power
Power that the federal government has which are clearly and deliberately written in constitution
Federal Funds Rate
the rate which Federal Reserve charges banks to lend them money
Federal Reserve
Similar to a big federal bank; affects money supply
Fiscal Federalism
Revenue sharing; block grants; grant in aid; States lose anatomy (bad side).
Fiscal Policy
Taxing policy and spending policy
General Agreement on Tariffs and Trade; established in 1948; replaced by WTO (World Trade Organization)
Good Neighbor Policy
No more gunboat diplomacy, treat our neighbor in the South with respect (FDR)
Gun Boat Diplomacy
The use/ threat of military force to coerce favorable treaty/ economic terms from a country.
Horizontal Federalism
State to State; article 4: "full faith and credit."
international monetary fund; loans millions of dollars to countries; a specialized agency of the United Nations that seeks to promote international monetary cooperation and to stimulate international trade
Implied Power
Power inexplicitly given by the constitution; elastic clause (article 1, section8)
increase in monetary value can lead to massive fast inflation
Inherent Power
Action necessary to maintain security; Lincoln and mobilization during the civil war.
Inventory Recession
An economic policy of demand; cost goes down
Washington’s policy based on the noninterference of the US in other countries' problems
Economic policy from 1932-1980 stimulated by the great depression and based on keeping demand a little ahead of supply (demand-side)
Laffer Curve
Reaganomic basic principle based on maximizing the tax rate; not too high not too low.
Laissez Faire
Government keeps "hands off" decision making; pro-business policy
Layer Cake Federalism
Dual federalism; Federal power is explicitly greater than State power.
Loose Monetary Policy
increase in money supply; more spending and investment; low IR's; inflation; and unemployment
Mutually Assured Destruction. "You nuke us we nuke you"
Marble Cake Federalism
New deal federalism; Federal power is inexplicitly greater than State power.