ECON103 Study Guide - Midterm Guide: United States Treasury Security, Credit Theory Of Money, Federal Funds Rate
Document Summary
Exam iii review: fiscal policy: studies government spending and taxing policies and how those policies impact the. Increase spending//deficit by choice bush and obama did this during their presidency their policy prescriptions did not work: tells us based on position of economy what actual taxes collected are. Increase//decrease spending not by choice factors of the cyclical business cycle: lower taxes. Inject money through gov. spending: the cyclically-adjusted budget use of tax cuts, tax cuts: reducing taxes, purpose: hopeful to stimulate economy people will spend extra money economic activity. Exam iii review: (cid:1857)(cid:1854)(cid:1872) =(cid:1865)(cid:1857)(cid:1853)(cid:1871)(cid:1873)(cid:1870)(cid:1857)(cid:1871) (cid:1853)(cid:1854)(cid:1864)(cid:1872) (cid:1872)(cid:1867) (cid:1868)(cid:1853) (cid:1854)(cid:1853)(cid:1855)(cid:1863, false issues: $=interest rate) lenders charge interest interest=price of what you borrow treasury funding debt increase demand for $ increase price of $ 5: materialistic advances (standard of living) vs. growth not in materialistic growth (parks, infrastructure, functions of money (3) Out of the country circulating in world of atm: (cid:2870)(cid:2871) 70% of am $ is outside of country.
