Monetary Policy
Money
Fiscal policy
Goods and stuff
Taxes
100
Policy that changes the amount of money in circulation to affect demand.
What is monetary policy?
100
Low interest rates make money easily available
What is loose monetary policy?
100
Policy that describes taxing and spending policy of the government
What is fiscal policy?
100
Side effect
What is an externality?
100
Flat tax
What is a proportional tax?
200
Keeping a fraction of total deposits on hand in banks and using the rest to lend.
What is Fractional reserve banking?
200
High interest rates make money hard to get
What is tight monetary policy?
200
Activity that takes money from some for those less well off
What is income redistribution?
200
Goods that can be denied to individuals
What is a private good?
200
Higher incomes pay more
What is progressive tax?
300
Requirement by the Federal Reserve to keep a portion of their money on hand
What is reserve requirement?
300
Interest rate charged to a bank’s best customers
What is prime rate?
300
Programs that give money based on need
What is public assistance?
300
Goods that can be used by many without reducing their utility
What is a public good?
300
Lower incomes pay more
What is a regressive tax?
400
Federal Reserve
What is the Fed?
400
Interest rate banks charge each other
What is federal funds rate?
400
Programs that give money to the retired, disabled, and unemployed
What is social insurance?
400
Money borrowed during the year
What is a deficit?
400
Tax paid by people who use a service
What is benefits received?
500
Committee who decides interest rates
What is the Federal Open Market Committee?
500
Interest rate charged by the Fed.
What is the discount rate?
500
Total money owed
What is debt?
500
Taxes paid regardless of use
What is ability to pay?
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