Economics

the Federal Open Market Committee (FOMC),

The Federal Reserve alters monetary policy to influence the amount of money and credit in the U.S. economy. These changes affect interest rates and the performance of the economy. The end goals of monetary policy are sustainable economic growth, full employment and stable prices.

tight money policy combats inflation (when to much money is out in circulation the Fed limits the amount of money that is in Circulation known as the tight money policy.)

The federal reserve banks did wellduring the depression due to regulations. The bank ended the depression

the government restricts the amount of money that banks can lend.

It processes payments, such as Social Security checks.

Cutting Taxes

increase gvt exp

john maynard keynes

by congress and the whitehouse

In contrast with Classical economics, Keynesian economics takes a broader view of the economy

a decrease in the money supply

Because there are more political complications with determining and implementing fiscal policy.

Gross National Product

FAC (Federal Advisory Councel)

The federal funds rate is the interest rate banks charge on loans in the federal funds market. The federal funds rate is not set administratively by the Fed. Instead, the rate is determined by the supply of reserves relative to the demand for them.

do nothing and let the economy fix itself

structural unemployment

rose by 1 percent

above the federal funds rate