Policy Debates - Net Exports The difference between exports...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Policy Debates Terms and Formulae Terms Lender - One who gives money to be repaid at a later date, with interest. Liabilities - Money owed. Loans - Money given by lenders to borrowers. Monetary Policy - Policy utilized by the Fed to affect the economy through open market operations, changing the reserve requirement, and changing the federal funds interest rate. Money - The stock of assets used in transactions within an economy. Money Multiplier - The number that describes the change in the money supply given an initial deposit and a reserve requirement. (See the Formula.) Money Supply - The total amount of currency in circulation as controlled by Fed policy. National Debt - Money owed by the government from budget deficits. National Savings - The difference between government spending and the amount of money collected in taxes.
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Net Exports - The difference between exports and imports. Open Market Operations - The purchase and sale of government bonds by the Fed in order to affect the money supply. Paper Balances - Deposits that exist on paper but are not backed by physical currency. Passive Policy - Monetary policy and fiscal policy whereby the appropriate course of action is left to the dictates of preset rules rather than to the discretion of policymakers. Policy by Rule - Monetary policy and fiscal policy whereby the appropriate course of action is left to the dictates of preset rules rather than to the discretion of policymakers. Policy Lag - The difference between when a policy is enacted and when it has the intended effects upon the economy. Price Level - The overall level of prices within an economy. Principle - The initial amount of money given as a loan....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern