| A | B |
|---|
| entitlement | fastest growing category of the budget |
| EFT | fastest growing type of money |
| checks | most widely used form of money |
| federal income tax | #1 source of federal funding |
| property tax | #1 source of local funding |
| sales tax | #1 source of state funding |
| FICA | social security |
| indexing | upward revision of tax brackets |
| VAT | tax on the value added to production |
| tax incidence | who actually pays a tax |
| tax elasticity | shifts payment of taxes |
| NIT | negative income tax |
| transfer payment | government receives no good or service |
| crowding out | gov. deficit makes it harder for private debtors |
| Social Security | largest federal expenditure |
| public welfare | largest state expenditure |
| secondary, elem. education | larget local expenditure |
| line-item | president's right to eliminate parts of budget |
| legal tender | must be accepted for all debts |
| elastic currency | fluctuates with economy's needs |
| fractional reserve requirement | holdings of US banks |
| legal reserves | vault cash, on deposit with Fed |
| legal minus required | excess reserves |
| FOMC | most common action of the Fed |
| discount rate | interest charged banks by the Fed |
| reserve requirement | least used tool of the Fed. |
| near money | holds only some characteristics of money |
| credit cards | debt, not money |
| M1 | money in the hands of the public |
| M2 | M1 plus large deposits |
| demand deposit | checking account |
| time deposit | savings account |
| equitable | fair |
| consequences | tax does what it is expected to do |
| legal | tax that the courts will not throw out |
| efficient | tax bringing in more than it costs |
| monetary policy | control of the money supply |
| fiscal policy | legislative spending, taxing |
| monetarist | increase MS by target rate |
| supply side | favor businesses |
| keynesian | priming the pump |
