Investing
A loan to a government or a business for a set amount of time with fixed interest
What is a bond?
Demand for all goods and services purchased in product markets
What is aggregate demand?
Taxing and government spending
What is fiscal policy?
change in spending/change in income
What is the MPC formula?
12 districts
How many districts are in the FED?
How easy the asset can be turned into cash
What is liquidity?
the total supply of goods and services available to a particular market from producers
What is aggregate supply?
Full employment, price stability, and economic growth (expansion)
1/1-MPC
What is the expidenture multiplier?
Conducts the nations monetary policy to promote maximum employment, stable prices and moderate, long-term interest rate in the US economy, remote stability of the financial system promote safety of individual, financial institutions, fosters payment and settlement system, safety and promotes consumer protection, and community development.
What are the 5 functions of the FED?
Cash, checking, savings, loans/stocks, bonds
Decrease in GDP
What does a shift left in aggregate demand do to the GDP?
Congress; president
Who creates the federal budget and who approves it?
real inflation rate + expected inflation
What is the nominal interest rate formula?
The Board of Governors
Who oversees the FED and it’s entities?
Loaning money to compensate the government
What is a bond?
The real wealth effect, interest rate effect, and exchange rate effect
What makes the aggregate demand curve slope downward?
Acclumation of deficits
What is debt?
Nominal interest rate-inflation rate
What is the real interest rate formula?
14 years
How long is the Board of Governors’ term?
Written claims where buyers have a right to future income from sellers
What are financial assets
Sticky wages
Why does the aggregate supply curve slope upward?
Results of deliberate actions by policy makers rather than rules
What is discretionary fiscal policy?
1/rr
What is the money multiplier formula?
To the US treasury
Where do all the net earnings of the FED go to?