US Economic Policy - Federal in made 1 Federal 2 12...

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- Federal reserve History - made in 1913 right before WWI - bankers met to find a way to protect the government from inflation and deflation - monitory policy - policies dealing with money 1) Federal reserve controls the am Mount of money in Circulation 2) Federal reserve sets interest rates ( what you pay to borrow money ) - Prime - the interest rates banks pay other banks for money - 12 regions with major banks all governed by a 7 member board who are appointed for 14 years at a time - 12 Banks - n Federal Federal 1 , , 1 , \ , , - - Advisory Board Director . - . - - - - ' Council Reserved - Federal Board reserve FOM ( ( Federal open market Committee ) led by Janet Yellen - 7 functions of the federal reserve : 1) Check Clearing - intermediary step when transferring checks between banks 2) Regulating money supply 3) Act as the government's fiscal agent - Keep track of the government 's money / the government 's bank 4) Supply paper money 5) financial advisor to the government - 6) Regulates interest rates 7) Sets standards for consumer legislation - Government growth - not very involved in economic policy but involvement has grown since 1929 ( great depression ) Constitution gives Congress power to regulate the economy through the Commerce Clause - about 3 million people work for the federal government - 20% of our GDP is the government Sector
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- Reasons for growth : 1) new deal - a set of government programs that were in acted during FDR 's presidency that aimed at bringing the US out of the
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