Economic Policy Nov 29

Economic Policy Nov - Economic Policy Taxation and Economic Policy(our economy is tightly integrated with government 1.Basic models for organizing

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Economic Policy-11/29/10 Taxation and Economic Policy (our economy is tightly integrated with government) 1.Basic models for organizing an economy 2. Fiscal and monetary policy i. Fiscal(spending, taxes,-Congress) Slow the use of government spending in combination with the tax policy for the purpose of influencing the overall performance of the national economy ii. Monetary-The Fed-controls interest rates and inflation (autonomous-view of long term with out job risk) The use of government’s ability to control the supply and availability of money for the purpose of influencing the overall performance of the economy iii. Techniques of monetary Control 1. Reserve requirements-the reserves member banks must maintain against their deposits in Federal Reserve banks 2. Discount Rate-the interest rate at which the federal Reserve lends money to commercial banks 3.Tax Policy 1. consumption vs. income Should the use of money or the acquisition of money be taxed 2. vertical(progressive, flat, and regressive) Progressive-Rich people pay higher rates(know how to compute),
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This note was uploaded on 05/15/2011 for the course POLI 100 taught by Professor Rabinowitz during the Fall '07 term at UNC.

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Economic Policy Nov - Economic Policy Taxation and Economic Policy(our economy is tightly integrated with government 1.Basic models for organizing

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