Tax and Spending Reform
Money and Federal Reserve
Banking and Monetary Policy
International Economics
Potluck
100
The average tax rate falls as income increases.
What is a regressive tax?
100
Medium of exchange, unit of account and store of value.
What are the functions of money?
100
The reserve ratio, the discount rate, and open market operations.
What are the tools of monetary policy?
100
Ability to produce a good at a lower opportunity cost.
What is comparative advantage?
100
The discount rate.
What is the interest rate the Fed charges banks?
200
Hiding income from the government to reduce your tax bill.
What is tax evasion?
200
Cash and checking accounts.
What is M1?
200
Using excess reserves to make loans.
How does the banking system create money?
200
Lower prices, more variety, more innovation, and better international relations.
What are the benefits of trade?
200
The difference between what consumers are willing to pay and what they actually pay. It is the area below the demand curve and above the price.
What is consumer surplus?
300
Total taxes paid divided by total income.
What is the average tax rate?
300
People accept it.
What give money value?
300
Raising the reserve ratio, raising the discount rate, and selling bonds.
What is tight monetary policy?
300
A tax on imported goods.
What is a tariff?
300
A tax on a broad array of goods and services.
What is a sales tax?
400
Expenses that can be subtracted from income to reduce tax bill.
What are tax deductions or loopholes?
400
The opportunity cost of holding cash.
What is the interest rate?
400
Lower the interest rate to cause investment and consumption to go up and shift AD to the right.
What is the goal of easy monetary policy?
400
Protect national security.
What is a reason to restrict trade?
400
Type of policy the Fed conducts during a recession.
What is easy monetary policy?
500
The people who get the benefit for a government service should pay for it.
What is the benefits received principle?
500
It does not have to go to Congress for money and the terms of the Board of Governors are long.
Why is the Federal Reserve so independent?
500
Monetary policy is more effective against inflation than it is against a recession.
What is weakness of monetary policy?
500
Consumer surplus is destroyed.
What is an impact of restricting trade?
500
It is easy to pay and administer.
What is a simple tax?
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