Money
This is the term for a nation’s official medium of exchange, usually issued by a central authority.
What is Currency
What does inflation do to the value of the dollar?
What is, it reduces it.
Fiscal refers to anything...
What is anything related to government revenue, spending and debt.
What is an example of something that has been used as money other than paper and coins?
What is Tulips, Salt, Shells, Cheese, etc.
A symbol, color, or security feature that makes bill difficult to counterfeit.
What is a watermark.
What happens to the cost of goods under inflation?
What is, they increase.
The two tools that the Government Has to Help the Economy…
What are
1. Taxation
2. Government spending
Shrinkflation is when...
What is, Businesses increase price but reduce the amount of a product.
In the US our type of currency is known as what?
Fiat Currency
What percent is considered "normal" for inflation?
What is 2%.
Two Goals of Fiscal Policy are...
What is
Aggregate Demand is...
What is the total demand for goods and services within a particular market.
Money is...
What is ANYTHING accepted in payment for goods & services.
What is the primary cause of inflation?
What is, too much currency in circulation.
The goal of Expansionary Fiscal Policy is...
What is to increase aggregate demand and stimulate a weak economy.
What is an example of a Automatic Stabilizer?
What is, Public Transfer Payments, Progressive income Tax, Food Stamps, unemployment, etc.
What are the two things that give fiat money its value?
What is the amount in circulation and the strength and stability of the issuing government.
Hyperinflation is when...
What is, Prices increase rapidly over a short amount of time.
The goal of Contractionary Fiscal Policy is...
What is to reduce aggregate demand and slow the economy.
What is one of the three functions of money?
What is a...