Econ Chapter 8
the commitment of resources to a project or purpose that is expected to bring future profit to the investor.
what is an investment
Name one source of the American money supply.
what is the United States Department of the Treas- ury
an established system of political administration by which a nation, state, society, or organization is ruled.
what is a government
the economic condition in which high inflation is combined with high unemploy- ment, resulting in stagnation of productivity.
what is stagflation
who formulated the basic ideas of Communism and advocated the overthrow of the free market.
who is Karl Marx
one who borrows money or capital
what is a debtor
Who's duty is it operate America’s banking system
who are the Board of Governors
When taxes on commerce, real property, and personal and cor- porate incomes become too heavy,
what is Excessive taxation
the theory that reduction of taxes makes more money available for private investment in capital and research, thereby increasing productivity.
what is supply-side economics,
property owners that are to be overthrown
who are the bourgeois
one who lends money or capital
what is a creditor
Who makes decisions regarding the buying and selling of government securities, such as Treasury notes, bills, and bonds
who are the Federal Open Market Committee
Inflation and debasement of money.
When a government, under the sponsorship of a central bank, adds too much to the money supply, prices rise rapidly, investments are discouraged, interest rates increase, and most people suffer economically.
what is Inflation and debasement of money.
The recurrent fluctuations in the level of economic activity
what is the business cycle.
a term for the middle working class
what is proletariat
an account that allows checks to be written up to the dollar amount that the account holder has deposited
what is a transaction account
What is the duty of the Federal Reserve Banks
They influence the policies of the private commercial banks with which you are familiar.
the building of magnificent public works, by indulging in impractical political and economic schemes, and by forming huge bureaucracies
.
what is Excessive public expenditure
This term refers to the value of all finished goods and services produced by a nation’s citizens during a year’s time.
what is the gross national product (GNP),
any economic system based upon collective ownership and control of many or most national resources
what is Socialism
an account holder’s written order that authorizes his bank to withdraw funds from his account
what is a check
a period, usually six months or longer, during which the economy recedes, or declines.
What is a recession
had the idea that it is government’s responsi- bility to pump money into an economy and ensure a low unemployment rate was part of the philosophy of British economist
who is John Maynard Keynes
he high point of a business cycle, where activity is at its highest,
what is the peak
an imagined place or state of things in which everything is perfect.
what is a utopia