Tax
What tax is on a consumer purchase, paid upon purchase.
Sales Tax
What government program(s) have the largest financial budget?
Social security/health
Despite being heavily associated with the government, this bank is detached from the government, what bank is this?
The Federal Reserve
Keynesian Policy
What economic policy regarded as "supply side" is done by lowering taxes?
Fiscal Policy
What three factors are variables in sales tax?
State, city, and county
What is the national debt?
Total money borrowed by the gov.
In the federal reserve, how many people are in the open market committee?
12
What time related limit is usually associated with Keynesian economics.
It takes time to see if it is working.
What is fiscal policy supposed to do (in theory)?
Target producers to stimulate their output
What tax is a federal tax on people's earnings?
What is discretionary spending?
When congress can control the amounts.
How long is the term for the board of governors?
14 years
Why is it hard to stop or end policies created by Keynesian Economics?
People like them.
Whats the biggest downside to supply sided economic policy?
Companies do not always produce more with the extra money.
What type of tax increases as income level increases?
Progressive tax
What type of spending is something the federal government must pay out?
Mandatory spending.
What is something the fed issues?
paper currency.
What is the most direct and efficient way to stimulate demand?
Government spending.
Because people will spend more.
What tax is put onto the production of a good?
What does the federal government pay companies to do?
Build/repair, create infrastructure, increased educational programs, and entitlement programs.
Banks are required to keep a fraction of their deposits on hand, what is this called?
Cash reserves.
Once the government pulls back from spending, what sector is supposed to take over?
Private sector
Why is supply side economic theory hard to measure?
Because government spending has never really been cut.