bureaucracy, the crowding out effect, gov't spending programs are inflationary, there is log-rolling, pork barrel legislation, and x-mas tree bills.psychological benefits, lag is much smaller, very few political problems with itthe effect is smaller, can't target specific areas, don't know what people will do with the money - unpredictablenamed by reagan, change in T, G, and M1 to impact supplyKeynesian, involves change in T,G, and M1 to impact demandsupply-side economics base their thinking off of this law - the production of goods and services (supply) creates the demand needed to buy it backthis holds the belief that if you change demand, you can change output. The Federal Reserve is more than the Board of Governors. Start studying Economics (Federal Reserve System). Economics Chapter 4 Quizlet Economics Chapter 4 Quizlet Thank you unquestionably much for downloading Economics Chapter 4 Quizlet. Economics definition, the science that deals with the production, distribution, and consumption of goods and services, or the material welfare of humankind. this leads to job creation, the new income, new spending, and economic growthAccording to Say, saving can only be motivated by increases in thisKeynes stated that interests rates in themselves would not create thisthese six factors of investors (changes in tech, economic conditions, competition, taxes, profit expectations, and interest rates) create this - the curve for investment fundsthe chances of savers and investors reaching agreement in the market are almost thisKeynes said an economy could come to rest short of full employment, at full employment, or beyond full employment, called this.he added the third tier, G, it was their responsibility to deal with unemployment and inflation - FISCAL POLICY!! The commercial banks in each district elect a Board of Directors for each regional Federal Reserve Bank, and that board chooses a president for each regional Federal Reserve district. Macroeconomics quizlet final exam. banks have to put up collateral to borrow.if we have high unemployment and a lagging GDP, the fed does this to borrowing by lowering interest ratesthis involves the buying and selling of short-term negotiable federal securities (T-bills)these are sold by the treasury to finance the deficit, sold in $10,000 denominationsspeedy and flexible, very little politics, a-political, non-discriminating, lag is shortnot effective in dealing with unemployment, totally discretionary, frequently offset by changes in the velocity of the m1, private offsets to monetary policy, sometimes the policies of the treasury and fed come into conflictthe DELIBERATE use of the federal budget to influence economic activity.if congress adopts an intentional budgetary deficit created by spending and/or tax cuts, it is thisthese people said deficiencies in consumer spending or investment spending would correct itself, but they were wrongKeynes said that sometimes large and prolonged deficits are needed to correct depression - they could be paid off when the economy experienced economic growth and generated revenue, this is called.this is an approach to fiscal policy, requires an active congress and/or executive action to try to get the economy running: public works projects, change in taxes, change in entitlement programs, change in military spending, and change in federal payrollsin this approach to fiscal policy, there are progressive income taxes, unemployment compensation, and farming aid programs.when taxes = government spending. The Federal Reserve System is authorized to ensure sufficient money and credit in the banking system that is needed to support a growing economy. Analyze federal fiscal policy in terms of the text's four categories of politics. If you're having any problems, or would like to give some feedback, we'd love to hear from you. The Fed also includes 12 regional Federal Reserve banks, each of which is responsible for supporting the commercial banks and economy generally in its district. The Federal Reserve districts and the cities where their regional headquarters are located are shown in the figure 7.2. Start studying Macroeconomics - Federal Reserve System.

... economic growth, the Federal Reserve System.


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