Active Policy - Monetary policy and fiscal policy whereby the appropriate course of action is left to the discretion of policymakers rather than to the dictates of preset rules. Assets - Cash, stocks, bonds, and physical goods that are stores of wealth and value. Balance Sheet - An accounting tool where assets and liabilities are compared side by side. Borrowers - Individuals who take out loans from banks. Budget Deficit - When the amount of money spent by the government is greater than the amount of money collected by the government. Budget surplus - When the amount of money spent by the government is less than the amount of money collected by the government. Capital - Physical, human, and intellectual property used to increase productivity. Consumption - Money spent on goods and services by consumers. Contractionary Fiscal Policy - Policy utilized by the government to slow the economy through increasing taxes and reducing government spending. Contractionary Monetary Policy
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This note was uploaded on 12/13/2011 for the course ECO 1310 taught by Professor Staff during the Fall '10 term at Texas State.