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ECO201 Assignment

Teacher: Professor Glenda Evans
Horizontales
institution which conducts a nation’s monetary policy and regulates its banking system
an insurance system that makes sure depositors in a bank do not lose their money, even if the bank goes bankrupt
tax and spending rules that have the effect of slowing down the rate of decrease in aggregate demand when the economy slows down and restraining aggregate demand when the economy speeds up, without any additional change in legislation
a tax in which people with higher incomes pay a smaller share of their income in tax
when government spending and taxes are equal
Verticales
the speed with which money circulates through the economy; calculated as the nominal GDP divided by the money supply
when depositors race to the bank to withdraw their deposits for fear that otherwise they would be lost
a tax that is a flat percentage of income earned, regardless of level of income
when the federal government spends more money than it receives in taxes in a given year
the interest rate charged by the central bank on the loans that it gives to other commercial banks
federal spending and borrowing causes interest rates to rise and business investment to fall
a tax that collects a greater share of income from those with high incomes than from those with lower incomes
a tax imposed on corporate profits
when the government receives more money in taxes than it spends in a year
a tax on a specific good—on gasoline, tobacco, and alcohol
the total accumulated amount the government has borrowed, over time, and not yet paid back