Chapter 16,17,18,19

Total exports of final goods and services minus total imports of final goods and services

• Net exports

• Trade balance

• Trade surplus

• Trade deficit

Seeks to counteract business cycle fluctuations

• expansionary fiscal policy

• contractionary fiscal policy

• countercyclical fiscal policy

Paper bills and coins used to buy goods and services

• Currency

• Exchange

• Barter

Which of the following is an example of contractionary fiscal policy?

• decreasing the money supply

• increasing the interest rate

• increasing government spending

• increasing taxes

Money supply measure that is composed of currency and checkable deposits is known as ______.

Banks increase the money supply by:

• printing (minting) money

• controlling interest rates

• lending out funds to borrowers

• storing the money of savers

According to the models in Chapter 18, monetary policy is:

• more effective in the long run.

• more effective in the short run.

• equally effective in the long run and short run.

Occurs when each party in an exchange transaction happens to have what the other party desires

• Barter

• Double coincindence of wants

• Commodity money

• Fiat money

When people have rational expectations about inflation, it means that they base their inflation predictions on:

• all available information

• whether or not they have debt

• the rate of inflation from last year

• assuming zero inflation

In the spring of 2020, three separate fiscal policy acts were passed by President Trump to aid businesses. This type of fiscal policy is known as ______________ spending.