expansionary policies

fiscal policies (higher spending + tax cuts) that encourage economic growth

interest rate banks charge each other for loans

open market operations

buying and selling of gov securities to alter supply of money

situation in which govt spends more than it takes in

federal open market committee (FOMC)

Federal reserve committee: makes decisions abt interest rates +money supply

rate of interest banks charge on short-term loans to their best customers

a plan for the federal govt's revenues and spending for the coming yr

a bill that sets money aside for specific spending

rate the Federal Reserve charges for loans to commercial banks

govt bond that can be issued for as long as 30 yrs

all the money that federal gov owes to bondholders

Federal reserve districts

twelve banking districts created by Federal Reserve Act

budget in which revenues are equal to spending

Office of Management and Budget (OMB)

govt office that manages the federal budget.

a twelve-month period that can begin on any date

situation in which gov takes in more than it spends

contractionary policies

fiscal policies (lower spending + higher taxes) that reduce economic growth

belief that money supply is most imp factor in macroeconomic performance

Congressional Budget Office

provides info needed by congress to develop government budgets

idea that evry $ of govt spending creates more than a $ in econ activity

idea that free markets can regulate themselves

form of demand-side econ that encourage gov action to inc/dec demand+output

seven-member board that oversees the Federal Reserve System

process by which money enters into circulation

supply-side economics

school of econ that believes tax cuts can help an economy by raising supply

use of govt spending and revenue collection to influence the economy.

loss of funds for private investment due to gov borrowing

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Econ vocab: Fiscal Policy & The Fed

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Questions 31

Answers

1
monetary policy
actions federal reserve takes to influence real GDP level + inflation rate
twelve banking districts created by Federal Reserve Act
Federal reserve committee: makes decisions abt interest rates +money supply
seven-member board that oversees the Federal Reserve System
2
easy money supply
belief that money supply is most imp factor in macroeconomic performance
monetary policy that increases money supply
buying and selling of gov securities to alter supply of money
monetary policy that reduces money supply
3
tight money supply
monetary policy that reduces money supply
monetary policy that increases money supply
buying and selling of gov securities to alter supply of money
belief that money supply is most imp factor in macroeconomic performance
4
expansionary policies
fiscal policies (lower spending + higher taxes) that reduce economic growth
a bill that sets money aside for specific spending
govt office that manages the federal budget.
fiscal policies (higher spending + tax cuts) that encourage economic growth
5
hyperinflation
govt bond that can be issued for as long as 30 yrs
situation in which gov takes in more than it spends
all the money that federal gov owes to bondholders
very high inflation
6
federal funds rate
interest rate banks charge each other for loans
rate the Federal Reserve charges for loans to commercial banks
twelve banking districts created by Federal Reserve Act
actions federal reserve takes to influence real GDP level + inflation rate
7
open market operations
belief that money supply is most imp factor in macroeconomic performance
buying and selling of gov securities to alter supply of money
process by which money enters into circulation
rate the Federal Reserve charges for loans to commercial banks
8
budget deficit
situation in which gov takes in more than it spends
very high inflation
govt bond that can be issued for as long as 30 yrs
situation in which govt spends more than it takes in
9
federal open market committee (FOMC)
actions federal reserve takes to influence real GDP level + inflation rate
seven-member board that oversees the Federal Reserve System
twelve banking districts created by Federal Reserve Act
Federal reserve committee: makes decisions abt interest rates +money supply
10
prime rate
rate the Federal Reserve charges for loans to commercial banks
rate of interest banks charge on short-term loans to their best customers
buying and selling of gov securities to alter supply of money
process by which money enters into circulation
11
federal budget
govt office that manages the federal budget.
use of govt spending and revenue collection to influence the economy.
a twelve-month period that can begin on any date
a plan for the federal govt's revenues and spending for the coming yr
12
appropriations bill
a bill that sets money aside for specific spending
fiscal policies (lower spending + higher taxes) that reduce economic growth
govt office that manages the federal budget.
fiscal policies (higher spending + tax cuts) that encourage economic growth
13
discount rate
rate the Federal Reserve charges for loans to commercial banks
twelve banking districts created by Federal Reserve Act
process by which money enters into circulation
interest rate banks charge each other for loans
14
treasury bond
very high inflation
loss of funds for private investment due to gov borrowing
govt bond that can be issued for as long as 30 yrs
all the money that federal gov owes to bondholders
15
national debt
all the money that federal gov owes to bondholders
loss of funds for private investment due to gov borrowing
very high inflation
govt bond that can be issued for as long as 30 yrs
16
Federal reserve districts
actions federal reserve takes to influence real GDP level + inflation rate
Federal reserve committee: makes decisions abt interest rates +money supply
seven-member board that oversees the Federal Reserve System
twelve banking districts created by Federal Reserve Act
17
balanced budget
situation in which gov takes in more than it spends
school of econ that believes tax cuts can help an economy by raising supply
budget in which revenues are equal to spending
situation in which govt spends more than it takes in
18
Office of Management and Budget (OMB)
govt office that manages the federal budget.
a bill that sets money aside for specific spending
fiscal policies (lower spending + higher taxes) that reduce economic growth
fiscal policies (higher spending + tax cuts) that encourage economic growth
19
fiscal year
fiscal policies (higher spending + tax cuts) that encourage economic growth
a bill that sets money aside for specific spending
govt office that manages the federal budget.
a twelve-month period that can begin on any date
20
budget surplus
school of econ that believes tax cuts can help an economy by raising supply
situation in which gov takes in more than it spends
budget in which revenues are equal to spending
situation in which govt spends more than it takes in
21
contractionary policies
a bill that sets money aside for specific spending
fiscal policies (higher spending + tax cuts) that encourage economic growth
idea that free markets can regulate themselves
fiscal policies (lower spending + higher taxes) that reduce economic growth
22
monetarism
belief that money supply is most imp factor in macroeconomic performance
buying and selling of gov securities to alter supply of money
monetary policy that reduces money supply
monetary policy that increases money supply
23
Congressional Budget Office
interest group who contacts law makers
work bill congress passes every year
provides info needed by congress to develop government budgets
largest Library in the world
24
multiplier effect
idea that evry $ of govt spending creates more than a $ in econ activity
school of econ that believes tax cuts can help an economy by raising supply
form of demand-side econ that encourage gov action to inc/dec demand+output
idea that free markets can regulate themselves
25
classical economics
fiscal policies (lower spending + higher taxes) that reduce economic growth
fiscal policies (higher spending + tax cuts) that encourage economic growth
idea that free markets can regulate themselves
a bill that sets money aside for specific spending
26
keynesian economics
form of demand-side econ that encourage gov action to inc/dec demand+output
fiscal policies (higher spending + tax cuts) that encourage economic growth
idea that free markets can regulate themselves
idea that evry $ of govt spending creates more than a $ in econ activity
27
Board of Governors
loss of funds for private investment due to gov borrowing
seven-member board that oversees the Federal Reserve System
all the money that federal gov owes to bondholders
actions federal reserve takes to influence real GDP level + inflation rate
28
money creation
rate of interest banks charge on short-term loans to their best customers
process by which money enters into circulation
buying and selling of gov securities to alter supply of money
rate the Federal Reserve charges for loans to commercial banks
29
supply-side economics
idea that free markets can regulate themselves
idea that evry $ of govt spending creates more than a $ in econ activity
form of demand-side econ that encourage gov action to inc/dec demand+output
school of econ that believes tax cuts can help an economy by raising supply
30
fiscal policy
govt office that manages the federal budget.
a plan for the federal govt's revenues and spending for the coming yr
use of govt spending and revenue collection to influence the economy.
a twelve-month period that can begin on any date
31
crowding-out effect
govt bond that can be issued for as long as 30 yrs
loss of funds for private investment due to gov borrowing
seven-member board that oversees the Federal Reserve System
all the money that federal gov owes to bondholders

Econ vocab: Fiscal Policy & The Fed Flashcards | StudBud