Section 11-19-07 - supply of money , or trading in foreign...

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Section 11/19/07 1. Laissez-Faire => interventionist state a. Federalists/whigs/republican =>Internal improvements (canals/roads) b. Democrats on side of Laissez Faire 2. Government involvement in the economy a. Regulatory policy (economic, social) b. Fiscal Policy i. refers to the federal government's use of its annual budget (in the US usually 'handed down' in May each year) to affect the level of economic activity, resource allocation and income distribution 3. Monetary Policy i. Regulation of authority manages the
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Unformatted text preview: supply of money , or trading in foreign exchange markets . 4. Defecit a. Three Ways to address: i. Raise Taxes ii. Cut spending iii. Borrow money b. Borrowing money i. Political effects Currency values decrease in comparison If someone owning our debt sells, kills our currency value ii. Things to do with money Spend it (consumption) Investment (Safe/Risky) risk: when interest rates are low Save Benefit from high interest rates...
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This note was uploaded on 04/01/2008 for the course POLISCI 111 taught by Professor Lupia during the Spring '07 term at University of Michigan.

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