It is the fall in investment that results from excessive government borrowing.
What is crowding out?
100
An increase in aggregate demand will have this impact on the unemployment rate>
What is a decrease in the unemployment rate?
100
If a country has balanced trade this must be equal to zero.
What is NFI?
100
This theory identifies the correlation between unemployment and GDP.
What is Okun's Law?
100
Enacted in 1933, this congressional act was intended to restore the banking sector. It included creation of the FDIC and limited banks’ ability to invest in risky activities.
What is Glass - Steagall Act?
200
It is a limit imposed by Congress on how much money the U.S. can borrow at any given time.
What is the debt ceiling?
200
A broad increase in the price of stocks causes an increase in the real wealth of individuals does this to the AS/AD Model.
What is an increase in aggregate demand
200
Domestic investment plus net foreign investment.
What is savings?
200
It is a representation of the relationship between possible rates of taxation and resulting levels of government revenue.
What is the Laffer Curve?
200
It is a financial instrument designed to transfer the credit exposure of fixed income products between parties.
What is a collateralized debt obligation?
300
It has sunk to its lowest level in 40 years highlighting Americans frustration with their ability to find work.
What is labor force participation?
300
Severe storms and natural disasters that devestates a nation's ability to produce.
What is a decrease in SRAS & LRAS?
300
It is the rate at which a person can trade the currency of one nation for the currency of another.
What is the nominal exchange rate?
300
It demonstrates a historical correlation between inflation and unemployment
What is the Phillips Curve?
300
It is the practice of buying at a low price and selling at a high price for a profit.
What is arbitrage?
400
When a nation’s interest rate approaches zero, its central bank can buy assets from banks to add additional liquidity to the banking system.
What is quantitative easing?
400
Increases in corporate and individual tax rates.
What is a decrease in AD?
400
The ability of a firm or individual to produce goods and/or services at a lower opportunity cost than other firms or individuals.
What is Comparative Advantage?
400
This Stanford University professors work provides a guideline for central bankers setting short term interest rates.
Who is Taylor? (Taylor Rule)
400
A type of mortgage that is normally made out to borrowers with lower credit ratings
What is a sub-prime mortgage?
500
A few consecutive years of these will cause the real interest rate to rise and the real exchange rate to fall.
What are government deficits?
500
Amnesty of all non-documented immigrants and their families living abroad.
What is AD, SRAS & LRAS shifting to the right?
500
It includes international accounts records payments for exports and imports of goods, military transactions, foreign travel, investment income, and foreign gifts
What is the current account?
500
This is used by central banks to develop policy making decisions. It targets potential output that can be sustained over time without accelerating inflation.
What is the NAIRU?
500
Passed in 1999, this repealed a basis tenet of the 1933 Banking Act; and it allowed insurance companies, commercial banks, investment banks and securities firms to consolidate.