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Definition
| the federal reserve, and to fdic |
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Definition
| the most important job of money |
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Term
| as the interest rate declines the amount of money the public wishes to hold |
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Definition
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Term
| which one of the following is not part of our money supply? dollar bills, demand deposits, travelers checks, gold |
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Definition
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| people tend to hold more money as |
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Definition
| the price level falls and interest rates rise |
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Term
| paper money in the united states is issued by the |
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Definition
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Term
| time deposits are included in |
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Definition
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Definition
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Term
| the members of the board of governors are appointed by |
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Definition
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Term
| the larger the reserve ratio the |
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Definition
| larger the deposit expansion multiplier |
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Term
| open market operations are |
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Definition
| the borrowing and selling of united states governmnet securities by the fed |
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Term
| when the fed wants to increase the money supply if |
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Definition
| buys u.s. governmnet securities |
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Term
| which is not a job of the federal reserve |
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Definition
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Term
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Definition
| actual reserves - required reserves = excess reserves |
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Term
| bank panics were the result of |
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Definition
| depositors attempting to withdraw more deposits than the banks held in reserve |
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Term
| the discount rate refers to |
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Definition
| the rate of interest that the fed charges on loans to commercial banks and thrift institutions |
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Term
| the federal reserve system controls the money supply primarily through |
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Definition
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Term
| the federal funds rate is the interest rate for |
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Definition
| reserves borrowed by one bank from another bank |
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Term
| the federal reserve CANNOT do one of the following: change the tax rate on profits, change the discount rate, change the required reserve ration, change margin requirements, buy securities on the open market |
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Definition
| change the tax rate on profits |
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Term
| the classical economists believed that recessions |
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Definition
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Term
| say's law was the centerpiece of |
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Definition
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Term
| the classical economists believed that |
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Definition
| both wages and prices were flexile downward |
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Term
| the problem during recesssions, said john maynard keynes, was |
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Definition
| inadequate aggregate demand |
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Term
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Definition
| the gap between rich and poor |
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Term
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Definition
| are determined according to the supply and demand in the market |
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Term
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Definition
| the market value of an economys production of final goods and services |
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Term
| per capita real gdp is found by |
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Definition
| dividing real GDP by population |
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Term
| The largest sector of GDP is |
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Definition
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Term
| If real GDP increased and GDP decreased during the same year, we could conclude that |
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Definition
| the unemployment rate increased during the year |
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Term
| "multiple counting" is avoided when calculating GDP by counting |
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Definition
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Term
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Definition
| at the bottom of business cycles |
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Term
| in general _________ by unanticipated inflation |
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Definition
| creditors are hurt and debtors are helped |
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Term
| kimberly quit her job as a computer programmer, spent two weeks in Hawaii, and now looking for (and expects to soon find) another job. she is _______ employed |
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Definition
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Term
| a person who is not in the labor force, but who wants to work is |
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Definition
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Term
| during unanticipated inflation savers lose, borrowers gain, lenders lose, uncertainty about the future rises |
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Definition
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Term
| staglation involves simultaneous high levels of |
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Definition
| unemployment and inflation |
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Term
| structual unemployment results from |
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Definition
| changes in both technology and the changing demand for products |
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Term
| the unemployment which occurs as jobs are eliminated because of changing technology is known as |
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Definition
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Term
| unemployment caused by economic decline or recession is called |
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Definition
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Term
| the unemployment rate is the |
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Definition
| percentage of the civilian labor force which is out of work |
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Term
| if the nominal rate of interest is 12% and the real rate of interest is 3%, then the expected rate of inflation is |
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Definition
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Term
| because of discouraged workers, the unemployment rate |
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Definition
| understates the unemployment problem |
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Term
| if the consumer price index decreases, who will be hammered? |
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Definition
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Term
| when there is a depression |
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Definition
| output cannot be raised unless prices are raised |
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Term
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Definition
| was a basic pillar of classical economics |
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Term
| laissez-faire economics was advocated by |
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Definition
| the classicals, but not by Keynes |
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Term
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Definition
| supply creates its own demand |
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Term
| the keynesian point of view suggests that |
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Definition
| demand creates its own supply |
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Term
| in analyzing recessions keynes' view was that |
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Definition
| the economy will never recover because wages and prices will never adjust upward |
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Term
| fiscal policy deals with each of the following except: the money supply, government spending, taxation, the federal budget |
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Definition
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Term
| there is a deflationary gap when |
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Definition
| equilibrium GDP is smaller than full employment GDP |
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Term
| to close a deflationary gap we should |
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Definition
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Term
| we have an inflationary gap when |
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Definition
| equilibrium GDP is greater than full employment GDP |
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Term
| in the 1930s John Maynard Keynes said that our economic problem was |
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Definition
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Term
| the public debt is the sum of all previos |
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Definition
| budget deficits less the budget surpluses of the federal government |
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Term
| if the federal budget deficit declines, the national debt |
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Definition
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Term
| if the MPC is 0.75 the spending multiplier is |
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Definition
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Term
| The paradox of thrift suggests that |
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Definition
| attempts to save more may actually reduce total saving |
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Term
| during recessionary periods |
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Definition
| tax revenues fall proportionately faster than does national income |
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Term
| deliberate changes in governmnet expenditures and taxes to influence the level of aggregate demand in the United States |
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Definition
| define discretionary fiscal policy |
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