Zusammenfassung der Ressource
fiscal policy
- what are the goals and limits of fiscal policy?
- to control the economy and lessen the effects of troughs and peaks
- economic ideas
- classical: economy will control itself
- demand: economy driven by demand for goods
- supply: economy is drive by the supply of goods
- keynesian: government should be active in the economy
- effects of budget deficits and national debt
- budget deficits cause the national debt to rise
- governments use of spending and taxing to control the economy
- monetary policy
- federal reserve
- organization of fed reserve
- 12 district banks
- national banks are members
- banks pay $ to receive stock
- controlled by board of geovernors
- controls money in the economy
- control
- change tax values
- make sure banks are following guidelines
- stability
- makes economies troughs and peaks less extreme