35- Monetary Policy, GDP, Price Level
Actions or communications by a central bank intended to help it achieve its macroeconomic policy objectives defines
What is monetary policy
deliberate changes in government spending and taxes to promote economic growth, full employment, and price level stability.
What is fiscal policy.
Ownership shares in a corporation.
What are stocks.
Free trade zone between Canada, Mexico and the USA
What is NAFTA.
Trading across borders.
What is international trade.
An interest rate set by a central bank to help it manage market-determined interest rates defines
What is an administered rate
intentional changes in taxes and government expenditures made by Congress to stabilize the economy.
What is Discretionary Fiscal Policy.
Buying or building a asset with the expectation of financial gain.
What is a financial investment.
Excise taxes or duties on the dollar value of physical quantities of imported goods.
What are tariffs.
The difference between all money flowing into the country in a particular period of time
open-market operations, forward guidance, and changing the administered interest rates.
What are the tools of monetary policy.
An appropriate fiscal policy for a severe recession is
What is a decrease in tax rates.
the concept that money you have now is worth more than the identical sum in the future due to its potential earning capacity.
What is the time value of money.
When imports exceed exports.
What is a trade deficit.
Demand and supply determine exchange rates without government intervention.
What is the floating exchange rate.
The interest rate that banks charge other banks.
What is the federal funds rate.
The amount by which government expenditures exceed revenues during a particular year is the
What is a budget deficit.
Buying and selling process that leads profit seeking investors to equalize the average expected rate of returns generated by nearly identical assets
What is arbitrage.
The economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners
What is comparative advantage.
Sum of financial transitions which take place between its residents and the residents of a foreign country.
What is the balance of payments.
Ch 34-a store of value, a unit of account, and a medium of exchange.
What are the functions of money.
Ch 34-The paper money used in the United States is
What are Federal Reserve notes.
Ch 34- Currency in circulation is part of....
What is M1 and M2
Ch 34- Money market deposit accounts are included in
What is M2 only
Ch 34- Purchasing groceries using a debit card best exemplifies money serving as a
What is a medium of exchange.