Cards in this guide (22)
How does bankruptcy affect interest rates on loans and credit cards
It cause interest rates to rise.
What technology do lawyers use
Computers, telephones, internet, and other office technology but
they probably also use cars, planes and household technologies
What is the crowding-out effect
A situation when increased interest rates lead to a reduction in
private investment spending such that it dampens the initial
increase of total investment spending is called crowding out
effect
What problem does tight money policy combat
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.)
How well did the Federal Reserve Banks perform during the Great Depression
The federal reserve banks did wellduring the depression due to regulations. The bank ended the depression
Which of the following tools is an example of monetary policy
the government restricts the amount of money that banks can
lend.
A supply-side economist would be in favor of what
Who believed that the government should influence the economy
The federal budget is put together
by congress and the whitehouse
In contrast with classical economics keynesian economics does what
In contrast with Classical economics, Keynesian economics takes
a broader view of the economy
In the United States what does the general level of a family's income have to do with the amount of cash the family is likely to hold
In America, it is accepted that the more money someone makes,
the more they should have in savings or invested. This may not
always be the case, but it is believed to be.
What change in monetary policy could eventually cause overborrowing and overinvestment
a decrease in the money supply
Why is the monetary policy administered by the federal reserve the principal method of softening the effects of the business cycle
Because there are more political complications with determining
and implementing fiscal policy.
Which of the following situations could cause a budget deficit for the federal government
What is the abbreviation for the research arm of the federal reserve
FAC (Federal Advisory Councel)
How do you change federal funds rate
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.
How much did the French government spend servicing it's debt in 1789
20 trillion american dollors in debt.
What is the federal reserve best known for
For regulating the nations money supply
What is the money multiplier formula
The money multiplier formula is the amount of new money that will be created with each demand deposit, calculated as 1 ÷ RRR.
In The Recent Past The Federal Reserve Has Set The Discount Rate
above the federal funds rate
If the Fed were to impose a slight increase in the required reserves ratio there would be .
If the Fed were to impose a slight increase in the required
reserves ratio, there would be _____.
What is the role of the Federal Open Market Committee FOMC
It makes key decisions about interest rates and the growth of the United States money supply.