Week 7 Vocabulary Review

1. Week 7 Vocabulary Review

2. Government taxing and spending decisions to manipulate the economy Fiscal policy Monetary policy Bonds Open market operations Discretionary spending Automatic stabilizer National debt National deficit Progressive tax Regressive tax Proportional tax

3. Governments deliberate changes to their spending and tax rates. Fiscal policy Monetary policy Bonds Open market operations Discretionary spending Automatic stabilizer National debt National deficit Progressive tax Regressive tax Proportional tax

4. Actions that the Federal Reserve takes to manage inflation and economic change. Fiscal policy Monetary policy Bonds Open market operations Discretionary spending Automatic stabilizer National debt National deficit Progressive tax Regressive tax Proportional tax

5. Tax rates that increase as income increases. Fiscal policy Monetary policy Bonds Open market operations Discretionary spending Automatic stabilizer National debt National deficit Progressive tax Regressive tax Proportional tax

6. Formal contract for a loan to the government. Fiscal policy Monetary policy Bonds Open market operations Discretionary spending Automatic stabilizer National debt National deficit Progressive tax Regressive tax Proportional tax

7. Total amount of money the government owes to bondholders Fiscal policy Monetary policy Bonds Open market operations Discretionary spending Automatic stabilizer National debt National deficit Progressive tax Regressive tax Proportional tax

8. Tax rates that decrease as income increases Fiscal policy Monetary policy Bonds Open market operations Discretionary spending Automatic stabilizer National debt National deficit Progressive tax Regressive tax Proportional tax

9. Government buying and selling treasury bonds to change the money supply Fiscal policy Monetary policy Bonds Open market operations Discretionary spending Automatic stabilizer National debt National deficit Progressive tax Regressive tax Proportional tax

10. Tax rates that stay the same as income increases Fiscal policy Monetary policy Bonds Open market operations Discretionary spending Automatic stabilizer National debt National deficit Progressive tax Regressive tax Proportional tax

11. Total amount the government overspends in a fiscal year Fiscal policy Monetary policy Bonds Open market operations Discretionary spending Automatic stabilizer National debt National deficit Progressive tax Regressive tax Proportional tax

12. Automatic adjustments to taxes and government spending as the economy changes Fiscal policy Monetary policy Bonds Open market operations Discretionary spending Automatic stabilizer National debt National deficit Progressive tax Regressive tax Proportional tax