| A | B |
|---|
| fiscal policy | the overall government program that establishes levels of taxing, borrowing, and spending that promote the desired economic goals for the nation |
| tax rate | the percentage at which income, property, or purchases are taxed |
| excise tax | a tax placed by the federal government and some state govenments on the manufacture, sale, or consumption of certain goods, often those considered to be luxury items or socailly undesireable products |
| estate tax | a tax levied on the assets, or property, of a person who has died. |
| gift tax | a tax by the federal government and some state governments on large transfers of property that are made without something of value being given in return |
| customs duty | a tax on goods brought into the United States |
| supply-side economics | the economic theory that focuses on achieving economic stability and growth by increasing the supply of goods and services throughout the economy |
| demand-side economics | an economic theoory developed by John Maynard Keynes proposing that government should stimulate the economy through measures that influence the overall demand for goods and services |
| tax incentive | a provision in a tax law intended to stimulate economic activity by encouraging business to invest in new capital |
| investment tax credit | a tax incentive that allows businesses to deduct from their taxes part of their investment in new equipment |
| restrictive fiscal policy | a government policy designed to reduce economic activity in times of overexpansion by increasing taxes and/or reducing government spending |
| expansionary fiscal policy | a government policy designed to stimulate economic activity by reducing taxes and increasing spending |
| federal budget | the estimate of the revenues and expenses of the federal government for a fiscal year |
| fiscal year | any 12 month period for financial reporting that ends on a date other than December 31 |
| budget deficit | the amount that an organization's spending exceeds the revenue it takes in over a designated period |
| budget surplus | the amount that an organization's income exceeds its spending over a designated period |
| deficit spending | a government policy of spending more money on its programs than it is able cover with expected revenue |
| national debt | the total amount of money that a nation owes its creditors |
| debt ceiling | the maximum limit of debt that a local, state, or national government allows for itself by law |
| currency | the paper money and coins that are in circulation in a nation and that make up its money supply |
| flat money | money that is not backed by gold, silver, or other items of value but that has worth because a government requires that it be accepted as a medium of exchange |
| near money | an asset that can easily be converted into cash when needed |
| specie | money in the form of coins |
| default | the failure to make payments on a loan |
| mutual savings bank | a bank that is owned by its depositors, who share in its profits. |
