Term
| a tax for which the percentage of income paid in taxes increases as income increases |
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Definition
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Term
| a tax for which the percentage of income paid in taxes decreases as income increases |
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Definition
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Term
| a tax for which the percentage of income paid in taxes remains the same for all income levels |
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Definition
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Term
| states those who get the benefit from the govt. service should pay for it |
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Definition
| Benefits-received principle |
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Term
| states that people should pay taxes according to their ability to pay them |
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Definition
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Term
| a prolonged economic contraction (lots of unemployment) |
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Definition
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Term
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Definition
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Term
| the use of government spending and revenue collection to influence the economy |
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Definition
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Term
| the actions the Federal Reserve takes to influence the level of real GDP and the rate of inflation in the economy |
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Definition
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Term
| an economic side effect of a good or service that generates benefits and costs to someone other than the person deciding how much to produce or consume |
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Term
| money that has value because the government has ordered that it is an acceptable means to pay debts |
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Term
| objects that have value in themselves as well as for use as money |
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Definition
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Term
| objects that have value because the holder can exchange them for something else of value |
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Definition
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Term
| money's ability to withstand wear and tear |
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Definition
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Term
| money's ability to be easily carried and transferred to other people |
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Definition
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Term
| money's ability to be easily divided into smaller denominations |
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Definition
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Term
| a characteristic of money that implies that units of money are the same |
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Definition
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Term
| a characteristic of money that allows it to be accepted as a form of payment by everyone in the economy |
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Definition
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Term
| rate the Federal Reserve charges for loans to commercial banks |
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Definition
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Term
| rate of interest banks charge on short-term loans to their best customers |
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Definition
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Term
| interest rate banks charge each other for loans |
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Definition
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Term
| the buying and selling of government securities to alter the supply of money |
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Definition
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Term
| monetary policy that reduces the money supply |
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Definition
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Term
| monetary policy that increases the money supply |
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Definition
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Term
| deposits that banks must keep on reserve and not loan out |
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Definition
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Term
| A price index determined by measuring the price of a standard group of goods meant to represent the typical “market basket” of a typical urban consumer |
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Definition
| Consumer Price Index (CPI) |
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Term
| A price index determined by measuring prices paid by producers for the coasts of production |
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Definition
| Producer Price Index (PPI) |
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Term
| the total value of all final goods and services produced in a particular economy |
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Definition
| Gross Domestic Product (GDP) |
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