Taxes
This is a mandatory payment to the government
This is when the government changes taxes and spending to affect the economy
What is fiscal Policy
Before the 1930's, most nations followed this economic belief
What is laissez-faire
This is the amount of money owed for all years
What is National Debt
This is commonly referred to as the FED, which acts as a bank for the government and other banks
What is the Federal Reserve System
This principle of taxation believes that those who benefit from the government's good or service should pay taxes
Benefits-recieve principal
This is used during a contraction, when the government wants to increase spending to boost the economy, so they decrease taxes and increase government spending
What is expansionary fiscal policy?
This theory believes that the government should increase spending during a contraction to increase consumer spending and help the economy
What is Demand side/Kenesia Economics
What is a balanced budget
There are ____ districts within the FED
This tax structure has the same % for all incomes
This is any change in government spending that leads to a larger change in consumer spending
What is the Multiplier effect?
This belief says that in a contraction, the costs of production should be lowered, so companies can supply more to the market and lower prices
What is Supply-side economics, or say's law
These are all reasons why a budget would go into a deficit
What is national emergencies, stabilize the economy, role of government, and need for public goods
This is the FED's actions that change the money supply to influence the economy
This is a tax on a particular good or service, like cigarettes gambling or alchol
What is an excise tax
When the government wants to slow down the economy, they do this
What is slow down spending and raise taxes
Most countries these days follow this economic theory
What is demand-side economics
The last surplus was in ____ under president clinton
What is 2000?
_____ is the amount that the FED charges a bank, while ____ is the amount the bank charges an individual
What is discount rate and prime rate
The ______ is the largest source of revenue for the federal government, while ____ is for states, and ____ is for local government.
What is income tax, sales tax, and property tax
These are the three major examples of the multiplier effect we went over in class (including years)
What is the New deal, The Recovery act of 2009, and the CARES act of 2020
Ronald Reagon and Arthur laffer attempted reaganomics, which was an attempt of this type of economic theory
What is says law/supply side economics?
This is the largest group of people to whom the US government owes money
What is bondholders/US citizens,/People?
The easy money policy, commonly used to increase the money supply in the market, does this
What is lower the RRR and Lower Interest Rates