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

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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.
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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....
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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.

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