Cards in this set:
Term
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Definition
| running the country by adjusting money |
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Definition
| rate of interest charged by the Federal Reserve banks for lending reserves to private banks |
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Definition
interest rate banks charge each other for reserve loans *Ben Bernacke lowered it 1.25% *Prime rate is 3 pts over fed funds rate |
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Definition
| Federal Reserve purchases and sales of govt bonds for the purpose of altering bank reserves |
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Term
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Definition
1. Classical Theory- supply & demand 2. Keynes- spend when times are bad 3. Milton Freedman- If you can control $, you can control economy |
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