Show:
GDP, Unemployment
Banking
Monetary Policy
Fiscal Policy
Multipliers, Crowding Out, and Loanable Funds
100
The GDP is comprised of investment spending, government spending, net exports, and this.
What is consumer spending?
100
The money multiplier is equal to the reciprocal of this.
What is the reserve requirement?
100

As the money supply increases, this decreases.

What is the nominal interest rate?

100

The goal of contractionary fiscal policy is to close this.

What is the recessionary gap?

100

The spending multiplier is equal to this.

What is 1/MPS or 1/(1-MPC)?

200
If Pancho the expert video cassette maker is unemployed recently due to the advent of DVD's, his unemployment is of this type.
What is structural?
200
The maximum amount of money a bank can loan out is equal to this.
What is its excess reserves?
200

Contractionary monetary policy serves to close the inflationary gap through doing this.

What is decreasing the money supply.

200

Expansionary fiscal policy entails decreasing taxes and increasing this.

What is government spending?

200

An increase in this causes the crowding out of investment spending.

What is the interest rate?

300

The natural rate of unemployment is when there is none of this type of unemployment.

What is cyclical?

300

What are the 3 functions of money

medium of exchange, store of value, and unit of account

300

This is the interest rate that banks charge each other for overnight loans

What is the federal funds rate?

300

Fiscal policy can only be conducted by this entity.

What is the government?

300

When the US government increases spending, this happens to the loanable funds market.

What is the demand for loanable funds shifts right?

400

Part-time workers are counted as this.

What is fully employed?

400

When a bank makes a loan, it is exchanging "new" money for this.

What is an IOU?

400

Expansionary Monetary Policy consists of decreasing the reserve requirement, buying bonds, and this.

What is decreasing the discount rate?

400

If the government wants to change taxes appropriately to exactly close the gap, then it must take into account these.

What is the MPS and MPC.

400

Crowding out has its most serious effects when this type of fiscal policy is pursued.

What is expansionary fiscal policy?

500

Top 4 countries w/ highest GDP in order

US, China, Germany, Japan

500

Coins, Currency, Demand Deposits and travelers checks make up what?

M1

500

This branch of the Federal Reserve is in charge of OMO's.

What is the New York branch?

500

When contractionary fiscal policy is pursued and the government wishes to increase taxes but decrease spending, it acquires this.

What is a surplus?

500

The supply of loanable funds shifts right when individuals are more inclined to do this.

What is save?