1 / 5

Federal Reserve

Federal Reserve. Monetary Policy- The Fed’s power over interest rates and amount of $ in reserve Fiscal Policy- The Government power over taxes and spending. Contractionary Policy (Tight $$) – during inflation 1. Increase interest rates

garret
Download Presentation

Federal Reserve

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Federal Reserve

  2. Monetary Policy- • The Fed’s power over interest rates and amount of $ in reserve • Fiscal Policy- • The Government power over taxes and spending

  3. Contractionary Policy (Tight $$) – during inflation • 1. Increase interest rates • 2. Increase reserve requirement ($$ banks must have in reserve) • 3. Increase taxes • 4. Decrease government spending

  4. Expansionary Policy (Easy or Loose $$) – during recession/depression • 1. decrease interest rate (easy to buy) • 2. decrease taxes • 3. decrease reserve requirements (banks have more $$ to loan) • 4. increase government spending

  5. Progressive Tax- • The higher one’s income the higher the percentage of tax (ex. Income tax) • Regressive Tax- • Tax imposed at a flat rate (ex. Sales tax) • Excise – tax on manufacture, sale, and consumption of goods; often called “hidden tax” (ex. Tax on fuel, alcohol, tobacco

More Related