Chapter 18
Who's In Charge Here?
FEDERAL RESERVE
Fed's Long Term Goals
:
Full employment
Economic Growth
Stable Prices
Stability in Balance of Trade
Equitable distribution of income & wealth
Efficiency
Full Employment
-
What is it?
-
Natural unemployment rate
-
Why higher rate of unemployment
-
Why want full employment
Economic growth
-
Define
-
How grow?
Increase productivity
-
labor
-
capital
-
Benefits of faster economic growth
-
Cost
Price Stability
-
define
-
Cost of higher prices
-
who gains
-
who losses
International/ Balance of Trade
-
define
-
finance continuous buying--impact
-
lower the price (exchange rate)
-
sell assets owned
-
borrow
-
fixed/floating rate
Equitable distribution of income/wealth
-
define
-
ultimate achievement of distribution (U. S.)
-
marketplace
-
govt expenditures
-
income tax systems
-
Survey Results:
Efficiency
-
define
-
market place
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