This type of tax forces people to pay a greater percentage of their wealth as they become poorer
regressive tax
100
This man developed the basic ideas that comprise fiscal policy
John Maynard Keynes
100
The relationship between interest rates and inflation
Inversely related
100
An economy in which money is circulating and growth is occurring is known as...
A virtuous cycle
100
What body governs fiscal policy at the national level?
Congress
200
This type of tax taxes people's wealth proportionally more as their wealth increases
progressive tax
200
A policy meant to stimulate demand is called...
An expansionary policy
200
An easy money policy refers to...
An expansionary monetary policy
200
Ultimately, the circular flow of the economy demands on what portion of GDP?
Consumption
200
The federal funds rate...
is the interest rate on loans made between banks
300
This kind of tax funds programs like social security
Payroll Tax
300
The most prominent historical example of fiscal policy in action is...
New Deal/World War II
300
The chair of the Fed. Reserve is...
Janet Yellen
300
The Paradox of Thrift refers to...
Saving actually harming the economy during a recession
300
Identify one problem with fiscal policy.
Lag time
400
This tax is regressive and funds public education in Massachusetts
Property tax
400
A contractionary policy used during a contractionary economy produces (explain in terms of growth and inflation)
negative growth and disinflation (or deflation)
400
What is the term for the Fed. Reserve expanding the money supply by buying a particular good from citizens and institutions?
Open Market Operations
400
Explain the meaning of "In the long run, we are all DEAD"
Better to borrow and spend now to improve the economy than it is to wait for the economy to fix itself
400
Evaluate this statement: "My money is my money, your money is your money."
The circular flow of the economy reminds us that wealth is interconnected between individuals
500
This tax taxes wealth left to heirs after one dies
The wealth/estate tax
500
Identify and explain two automatic stabilizers
Income tax and unemployment insurance
500
How many districts does that Fed have? When was the Fed made? What are the parts of its governing structure? What is your social security number?
12; 1913; Board of Governors, Presidents of the Regional Banks, FOMC; results will vary
500
According to opponents of Keynes, why does saving during a recession make sense?
Savings act as a means for investors to access credit
500
If John Maynard Keynes met Adam Smith, Keynes would be very upset because he wouldn't be able to find something of great importance to him. What would he be looking for?