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fiscal policy
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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
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