Economics Ch. 14,15 Money, the Fed, Stabilization Ch. 14,15-b Flashcards

1

Federal government's attempt to stabilize the economy through taxing and spending

2

Policy to stimulate output and lower unemployment by increasing production rather than demand

3

Anything a government decrees to be money

4

A change in investment spending will have a magnified effect on total spending

5

Fiat money that must be accepted in payment for debt

6

Fed plan to restrict the money supply and allow interest rates to rise

7

Point at which the level of real GDP is consistent with a given price level

8

Interest rate the Fed charges on loans to financial institutions

9

Fed's plan for expanding and contracting the money supply

10

The percentage of every deposit must be set aside as legal reserves by a bank

Economics Ch. 14,15 Money, the Fed, Stabilization Ch. 14,15-b