Economics

gives us the freedom of speech

new deal

Embargo.

medicare

false

Social security payments may be made to dependent children until they are 18.

true

1932

False

Tennessee Valley Authority

moratorium

recession

By balancing the budget. This can be done by increasing government income (raising taxes) and decreasing government expenditure.

trade deficit

A housing bubble is when, throughout the economy, more money has been borrowed against the paper value of a home than it can be resold for. During the last bubble, roughly 2007 -12, many people had borrowed against and/or refinanced their homes up to inflated values. Essentially, they were treating the equity in the home as a bank, cashing out to consolidate debt or to buy other things. The banks who made the loans, then bundled these mortgages into investments. When the economy tanked, people lost their jobs and could not make the payments. They became "underwater", which meant that they would owe more money on the loan than they could sell for. This caused a lot of foreclosures, where people walked away from their loans and the banks owned the houses which they could not sell either. The investments dropped in value. Another piece of this was that, with the easy money policies, underwriting of loans was extremely loose. There were loan applications where people could merely state their income and what they owed and the loan was given to them on that basis. These were called "liar's loans." They generated large commissions for the brokers who sold them to the banks. Millions were made and lost because the stated values had no basis.

School Teachers

conspicuous consumption

recession

present

Ben Bernanke was appointed Chairman of the Federal Reserve Sytem on February 1, 2006 by George W. Bush.

Deficit spending

Socialism (A+)