Policy Debates Terms and Formulae Terms Discretionary 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. Expansionary Fiscal Policy - Policy utilized by the government to stimulate the economy through reducing taxes and increasing government spending. Expansionary Monetary Policy - Policy utilized by the Fed to stimulate the economy through purchasing government bonds, reducing the reserve requirement, and reducing the federal funds interest rate. Factors of Production - The inputs of capital and labor required to produce output whose improvement leads to productivity increases. Federal Deposit Insurance Corporation - A corporation that insures individual bank accounts up to $100,000 to ensure that the public is confident in the banking system. Federal Funds Interest Rate - The discount interest rate at which the branch banks of the Fed loan money to other banks. Federal Reserve
This is the end of the preview. Sign up
access the rest of the document.
This note was uploaded on 02/09/2012 for the course ECO ECO2013 taught by Professor Jominy during the Fall '08 term at Broward College.