Monetary Policy
The Federal Reserve
Fiscal Policy
Random
Economics
100
Definition of Monetary Policy?
What is Federal Reserve actions that change the money supply in order to influence the economy.
100
The Federal Reserve's nickname is?
What is THE FED.
100
What's the spending-multiplier effect?
For every dollar spent, there is a multiplier effect in the economy.
100
The name of the U.S. CeNtRaL bAnK?
What is THE FEDERAL RESERVE
100
Supply and...
DEMAND
200
What are the three tools of the Fed to adjust Monetary Policy?
What is Open Market Operations, Adjust the Reserve Requirement (RRR), Adjusting the Discount Rate.
200
What is a central bank? (in general)
ANY nation's main (central) authority for banking.
200
Who is John Maynard Keynes?
200
Describe the Check-Clearing process.
Check writer to check recipient... to recipient's bank, to the Fed, to check-writer's bank.
200
Enticing someone with a benefit to do a certain action.
INCENTIVE
300
The most important job of the Fed is?
What is TO PROMOTE GROWTH AND STABILITY IN THE AMERICAN ECONOMY.
300
What are the three main functions of the Fed?
What are: SERVING THE BANKING SYSTEM, SERVING THE FEDERAL GOVERNMENT, CREATING MONEY.
300
The three types of "policies" that are used by the Government?
CONTRACTIONARY, EXPANSIONARY, DISCRETIONARY
300
What are ANY ONE of the factors that affect the demand for money? (in relation to the Fed)
CASH ON HAND, INTEREST RATES, COST OF CONSUMER GOODS/SERVICES, LEVEL OF INCOME.
300
What is supply side fiscal policy?
400
What are two alternate names for expansionary and contractionary monetary policy?
What is EASY-MONEY POLICY & TIGHT-MONEY POLICY
400
How does the Fed serve the banking system? (examples?)
What is CHECK CLEARING, LENDING MONEY, REGULATING & SUPERVISING BANKS.
400
ANY ONE of the limitations of fiscal policy?
What are POLICY LAGS, TIMING ISSUES, RATIONAL EXPECTATIONS THEORY, POLITICAL ISSUES, REGIONAL ISSUES.
400
What is the POINT OR PURPOSE of the Laffer Curve?
Shows that tax revenues increase (taxes are good) up to a certain point (then taxes are bad).
400
What is demand-side fiscal policy?
500
What is ONE of the impacts/limitations of Monetary policy?
SHORT-TERM EFFECTS, POLICY LAGS, or TIMING ISSUES.
500
What is the RRR and its definition.
What is REQUIRED RESERVE RATIO - the amount of money that must be kept in reserve by the bank.
500
What is fiscal policy? (definition)
THE FEDERAL GOVERNMENT'S USE OF TAXES AND GOVERNMENT SPENDING TO AFFECT THE ECONOMY
500
Theory that suggests that rapid changes in the money supply are the main cause of economic instability...
What is MONETARISM
500
Explain the difference between Fiscal Policy & Monetary Policy.
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