Money
Money that has value because the government says it does but has no other intrinsic value.
What is fiat money?
The government is trying to fight high unemployment and will use expansionary or contractionary fiscal policy.
What is expansionary fiscal policy?
The number of Federal Reserve District Banks in the United States.
What is 12?
In Washingtonland exports are $150 and imports are $200. The value of Washingtonland's net exports are
What is -$50?
An increase in the average price level.
What is inflation?
The function of money carried out when Susan is putting $50 away each month to put towards a new car in a few years.
What is store of value?
Inflation is 10% and unemployment is 3%, this specific fiscal policy action can be taken to fix the economy.
What is increase taxes or decrease government spending?
If the economy is facing high unemployment, then the money supply and interest on reserves need to..
What is increase money supply and decrease interest on reserves?
The country of Goochville had a national debt of $100 in 2021. In 2022 and 2023, Goochville had a budget deficit of $50. In 2024, Goochville had a budget surplus of $25. The current national debt of Goochville is
What is $175?
Joe takes out a loan for a new car with a fixed rate. Over the life of the loan, the inflation rate was higher than expected. Joe is better or worse off based on inflation
What is better off?
The way banks create money.
What is making loans?
The economy is sluggish and there is great concern that it is entering into a bad recession. These two fiscal policy actions can be taken to fix the economy.
What is decrease taxes and increase government spending?
If unemployment is at 10% and inflation is at 2%, then the FED would _________ the discount rate and ___________ bonds.
What is decrease and buy?
The island of Bogart has a population of 200 people. The labor force of Bogart is 100 with 80 people employed. Bogart's unemployment rate is
What is 20%?
If there is an increase in government spending. Price level and Real GDP would..
What is both increase?
The function of money carried out when Joseph tells his friends that his shoes are worth $300.
What is standard of value or unit of account?
Social Security is an example of this
What are transfer payments?
This open market operation action needs to be taken if the economy is experiencing high unemployment.
What is buy bonds?
In 2021, Burgessville had consumer spending of $500, investment spending of $250, exports of $100, government spending of $50, imports of $200, and government transfer payments of $200. The GDP of Burgessville is..
What is $700?
If inflation is high in the economy, then the Fed needs to ________ the money supply to fix the problem.
What is decrease?
This is caused by an excessive expansion of the money supply.
What is hyperinflation?
This occurs when government spending is greater than tax revenues?
What is a budget deficit?
The interest rate that banks charge each other for loans.
What is the federal funds rate?
Jolene spent $5 on flour at the grocery store to make cookies for her kids. Kiki's Bakery spends $5 for flour and uses is to make a pastry they sell to one of their customers for $9. GDP has increased by
What is $14?
The most common measure of inflation in the United States.
What is the Consumer Price Index or CPI?