Chapter 14 Terms 101 - federal government securities The...

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Flow – A quantity measured per unit of time; something that occurs over time, such as the income you earn per week or per year. Stock – The quantity of something, measured at a given point in time – for example, an inventory of goods or a bank account. Stocks are defined independently of time, although they are assessed at a point in time. (Income statement or balance sheet) Gross Public Debt – All Federal Public debt Net Public Debt – Subtract gross public debt from the portion that is held by government agencies. (What the federal government owes to itself) Deficits - The deficit is a flow and is the negative difference between tax receipts and total federal spending during a given time period. (One year) The Public Debt - The total accumulated value of all outstanding
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Unformatted text preview: federal government securities. The public debt is a stock measured at a given point in time. It increases when there is a deficit. (The ∑ of the yearly deficits) Annual interest payments on the public debt - The size of the public debt is not as important as how much interest we have to pay on the debt. Balanced Budget- The federal government has a balanced budget when revenues equal spending during a given period of time. Crowding-out Effect – The tendency of expansionary fiscal policy to cause a decrease in planned investment or planned consumption in the private sector; this decrease normally results from the rise in interest rates. Entitlements – Guaranteed benefits under a government program such as Social Security, Medicare, or Medicaid. 14...
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This note was uploaded on 06/06/2011 for the course ECON 101 taught by Professor Dsliva during the Fall '11 term at Moraine Valley Community College.

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Chapter 14 Terms 101 - federal government securities The...

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