| A | B |
|---|
| easy money policy | use to fight recession |
| tight money policy | use to fight inflation |
| progressive tax | taxes a greater % of money, the more you earn |
| regressive tax | taxes a greater % of money, the less you earn |
| Federal Reserve | The nation's bank |
| President | begins and ends the budget process |
| member banks | own the federal reserve system |
| FOMC | most frequently used tool of monetary policy |
| reserve requirement | the "blunt instrument" of monetary policy |
| discount rate | the "signal" in monetary policy |
| stagflation | inflation and no economic growth |
| automatic stabilizer | welfare or unemployment |
| discretionary stabilizer | law passed to increase economic stability |
| fiscal policy | government taxing and spending |
| monetary policy | stabilization through MS |
| Keynesian | demand side |
| trickle-down | supply-side |
| excess reserves | determines the banks lending ability |
| benefits received tax | gasoline tax |
| ability to pay tax | income tax |
| transfer payment | money exchange for no service |
| medium of exchange | function of money - allows purchases |
| store of value | function of money - allows savings |
| standard of value | function of money - allows comparisons |
