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☆☆☆☆☆Computers, telephones, internet, and other office technology but they probably also use cars, planes and household technologies
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
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
it lends money to banks or anyother 'institution' in financial difficulty.
consumers will spend more money in the market.
the government restricts the amount of money that banks can lend.
Cutting Taxes
john maynard keynes
by congress and the whitehouse
In contrast with Classical economics, Keynesian economics takes a broader view of the economy
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.
The federal reserve system was given more centralized power
a decrease in the money supply
Open-market operations
Check Clearing
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.
20 trillion american dollors in debt.
ensures growth in the economy
increased deficits
For regulating the nations money supply
The money multiplier formula is the amount of new money that will be created with each demand deposit, calculated as 1 ÷ RRR.
the U.S. President
above the federal funds rate
increase inflation
If the Fed were to impose a slight increase in the required reserves ratio, there would be _____.
It makes key decisions about interest rates and the growth of the United States money supply.
wait for the economy to achieve equilibrium
