The FED
They're made up of the Board of Governors and 5/12 main banks.
Who is the Federal Open Market Committee?
This is when income increases and the tax rate also increases.
What is a progressive tax?
The total demand of all goods and services.
What is aggregate demand?
Raising the reserve requirement will lead to this.
What is deflation?
Government services are provided to the public through these.
What are transfer payments?
Setting the percent that depository institutions must hold back is this function of the FED.
What is holding reserves?
How the government gets money to operate.
What are taxes and bonds?
A period of the business cycle that where inflation is growing.
What is an expansion period?
Buying bonds will lead to this.
What is inflation?
The elimination of these leads to an increase in competition.
What are monopolies?
"Conducting audits" is a part of this function of the FED.
What is supervising member banks?
Taxes on goods and services.
What are indirect taxes?
The government controlling the economy through fiscal policy.
What is Keynesian Economics?
The interest rate the Fed charges banks for borrowing money.
What is the discount rate?
Examples of these include education, defense, and highways.
What are government services?
He is the head of the Federal Reserve.
Who is Jerome Powell?
These are characteristics of a good tax.
What are simplicity, efficiency, certainty, and equity?
Raising taxes and lowering government spending will fix this.
What is an expansion?
The result of banks having more money to loan out.
What is inflation?
Money given to improve quality of life and the redistribution of income.
What are the characteristics of transfer payments?
These receive a charter from the government to become a part of the FED.
What are member banks?
This direct tax takes a fixed percent of income.
What is a proportional tax?
These are the four parts of aggregate demand.
What is consumer demand, government spending, business investment, and foreign trade?
The results of banks borrowing less from the FED.
What is deflation?
Social security and medicare are examples of this type of spending.
What is mandatory spending?