Monetary Policy
Social Security, Medicare, Medicaid and Agricultural subsidies are all called what?
Entitlements
What is the federal government use of taxing, spending and borrowing to stimulate growth in the economy called?
Fiscal policy
Why do Republican presidents usually focus their attention on controlling inflation?
So their constituents don’t lose the value of money they have invested or saved.
Tariffs (taxes on imports) are a form of what policy?
Fiscal policy
What is increasing the budget every year based on what the budget was last year, plus a little more called?
Incrementalism
Who is the Federal Reserve Chair?
Jerome Powell
Who controls fiscal policy?
The President and Congress
What is the economic policy of shielding our economy from imports?
Protectionism or Tariffs
What is the principle that the government should not meddle in the economy?
Laissez-faire
What is a rise in price of goods and services called?
Inflation
The government manipulation of the supply of money in private hands is called
Monetary policy
What example of fiscal policy was given to us during Covid?
Stimulus checks
What was implemented in 1913 to create an income tax for Americans?
The 16th Amendment
What can the Federal Reserve System do to curb inflation?
Decrease the amount of money in banks, thus raising loan rates (interest rates) and discouraging people from borrowing.
What pays for the Social Security program?
Payroll tax
Its 7 member board, appointed by the President and confirmed by the Senate is expected to do its job without regard to partisan politics. They have a 14 year term to keep them from the pressure of politics. Who are they?
The Federal Reserve System
An example of this economic policy is creating government jobs to ease unemployment. What is this economic policy that is employed by Democrats?
Keynesian economics
What are government programs given to people who are highly qualified and based on need called?
Means-tested programs (Medicaid)
What term means is designed to ensure competition and prevent monopoly?
Anti-trust policy
Give an example of tax expenditures.
employer contributions to health and insurance
1) deduction of mortgage interest in owner-occupied homes, 2) IRA and 401k or 403b retirement account and contributions and earnings, 3) deductions for charitable contributions, 4) company contributions to pension funds, 5) employer contributions to health and insurance
What 3 things does the Federal Reserve System do?
1) buy and sell government bonds (loaning money to the Federal government), 2) set targets for their federal funds rate, 3) set the interest rate for which banks lend money to people who want to borrow money for their business, to buy a car, and buy a house.
What is the economic theory (employed by Republicans) of stimulating the supply of goods by cutting taxes called?
Supply-side economics
What are negotiations between unions and management to make wages fair called?
Collective Bargaining
What is it called when revenue losses that result from special exemptions, exclusions, or deductions are allowed by federal tax law?
Tax expenditures
What are the reasons why Social Security, as it is currently operated, may go bankrupt by 2038?
1) The rising life expectancy of the elderly 2) and the retirement of baby boomers increases the number of recipients (getting Social Security) while reducing the number of people paying taxes and supporting them.