A
Government decisions about spending and taxes to influence the economy.
Fiscal Policy
The central bank of the United States, which manages monetary policy and regulates banks.
Federal Reserve
The rate at which prices increase over time, reducing the purchasing power of money.
Inflation Rate
A policy used to slow down the economy, usually to reduce inflation.
Contractionary Policy
The cost of borrowing money, usually shown as a percentage of the loan amount.
Interest Rate
Actions by a country's central bank (like the Federal Reserve) to control the money supply and interest rates.
Monetary Policy
A policy used to stimulate the economy, often through lowering taxes, increasing spending, or cutting interest rates.
Expansionary Policy
The percentage of deposits that a bank must keep in reserve and not lend out.
Reserve Ratio