Unit 5 Study Guide – Econ
Answer the questions and define the terms
net worth
tax base
board of governors
required reserve ratio inside lag
tariff
Medicare
discretionary spending
open market operations
balanced budget
When you drive away from the gas pump you just paid a _______________________tax.
The Laffer Curve shows
A progressive tax..
A regressive tax..
A proportional tax..
The two tools of Fiscal Policy are
Discretionary Fiscal Policy is when ________________ takes action
The purpose of Contractionary Fiscal Policy is to
The Federal deficit is…
The “crowding out effect” is when
How would you describe a tax that is assessed according to the benefits received principle?
Local government revenues mostly come from
The difference between Classical and Keynesian economics is
In order to borrow money, the Federal Reserve sells
What does monetary policy do?