Types of Economies
Traditional Economy
When the government collects money from businesses and individuals (usually on an annual basis)
Kevin Warsh
Least risky investment
Savings account
The Great Depression started in this country
United States of America
When the government has a "hands-off" approach to the economy.
Laissez-Faire/Market Economy
Tariff
Type of currency that the U.S. uses.
Fiat Currency
Riskiest investment that we covered in class
Stock Market
True or false: the Great Depression was a global event
True!!!
The type of economy that America uses
Mixed
When the government prohibits a practice or requires things to be done in a certain way
Regulation
Part of the Federal Reserve's responsibilities
Investment that is usually offered by the U.S. government, but can be offered by companies too
Bond
Unemployment rate in the U.S. during the Great Depression
25%
The two types of economies that are blended together to create a mixed economy
Command and Market
When the government supports certain businesses/industries through direct payments and/or tax breaks
Incentive/subsidy
Part of the Federal Reserve that decides on changes in Interest Rates
Federal Open Market Committee
the two animals used to describe the state of the stock market and the meaning for each.
Bear market: stock prices are down over a sustained period
Bull market: Stock prices are up over a sustained period
The main causes of the Great Depression
Tariffs+trade wars, Stock market crash, and banks failing to meet consumer demand
The four types of Economies
Traditional, Market, Command, Mixed
What is this an example of? The government requires all cars to be made with a standardized rate of fuel efficiency.
Regulation
The abandonment of this policy by the U.S. directly led to the creation of the Federal Reserve
Gold Standard
A strictly online investment that is riskier than any investment we discussed in class.
Cryptocurrencies
Three stages that an economy can experience
Expansion, recession, depression