GDP, Unemployment
As the money supply increases, this decreases.
What is the nominal interest rate?
The goal of contractionary fiscal policy is to close this.
What is the recessionary gap?
The spending multiplier is equal to this.
What is 1/MPS or 1/(1-MPC)?
Contractionary monetary policy serves to close the inflationary gap through doing this.
What is decreasing the money supply.
Expansionary fiscal policy entails decreasing taxes and increasing this.
What is government spending?
An increase in this causes the crowding out of investment spending.
What is the interest rate?
The natural rate of unemployment is when there is none of this type of unemployment.
What is cyclical?
What are the 3 functions of money
medium of exchange, store of value, and unit of account
This is the interest rate that banks charge each other for overnight loans
What is the federal funds rate?
Fiscal policy can only be conducted by this entity.
What is the government?
When the US government increases spending, this happens to the loanable funds market.
What is the demand for loanable funds shifts right?
Part-time workers are counted as this.
What is fully employed?
When a bank makes a loan, it is exchanging "new" money for this.
What is an IOU?
Expansionary Monetary Policy consists of decreasing the reserve requirement, buying bonds, and this.
What is decreasing the discount rate?
If the government wants to change taxes appropriately to exactly close the gap, then it must take into account these.
What is the MPS and MPC.
Crowding out has its most serious effects when this type of fiscal policy is pursued.
What is expansionary fiscal policy?
Top 4 countries w/ highest GDP in order
US, China, Germany, Japan
Coins, Currency, Demand Deposits and travelers checks make up what?
M1
This branch of the Federal Reserve is in charge of OMO's.
What is the New York branch?
When contractionary fiscal policy is pursued and the government wishes to increase taxes but decrease spending, it acquires this.
What is a surplus?
The supply of loanable funds shifts right when individuals are more inclined to do this.
What is save?