16207104
Description
Flashcards by Alana Neel, updated more than 1 year ago
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Created by Alana Neel
over 5 years ago
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| Question | Answer |
| What is the goal of lowering interest rates in the expansionary monetary policy? | It boost the GDP, lowers the value of currency, which decreases the exchange rate |
| Define policy agenda | The set of desired policies that political leaders view as their top priorities |
| What economic problem occurs when too much money in flowing and not enough production | inflation |
| What does GDP measure | It measures the total value of a country's economic output (goods and service produced) taken as a whole |
| Define the difference between budget deficit and federal debt | Budget deficit occurs when tax revenue does not cover government spending in a whole year; whereas, federal debt is the total accumulation of outstanding borrowing by the government |
| Define Fiscal Policy | the use of the governments taxing and spending power to influence the direction of the economy |
| Define supply-side economics | The theory that lower tax rates will stimulate the economy by encouraging people to save, invest and produce more goods and services |
| What interventions would a Keynesian economic theorist desire | tax cuts or increased government spending |
| What are the areas of mandatory spending in the federal budget | Social Security, Medicaid and Medicare |
| What is the highest area of spending in the national budget | Mandatory spending (entitlement programs) |
| Define and give an example of progressive tax | When the rich pay proportionately higher taxes than the poor (having a sales tax on luxury goods) |
| Define reserve requirement | the minimun amount of money the bank is required to have on hand to back up it's assets |
| Define discount rate | interest rate that the bank must pay on a short term loan from the Federal Reserve Bank |
| Define welfare and provide examples | Financial or other assistance provided by the government; usually based on need (Medicaid, Medicare) |
| What was the name of the social policy package initiated by the FDR to get out of the Depression | New Deal |
| What president created the Great Society policy reforms? | Lyndon B. Johnson |
| Why is the Social Security fund in a problematic state? | The number of American needing social security is expected to double by 2030, leaving less workers to support the retirees |
| What is isolationism? | States should, whenever possible, work alone to define and implement their foreign policy, working with other nations only when absolutely necessary |
| Define internationalism | States should, whenever possible, pursue their foreign policy goals by working together with other nations |
| What is the idealism | Foreign policy reflects the ideals held by a state's leaders, such as protection of human rights |
| What is the National Security Council responsible for | It is responsible for advising the present on matters of foreign policy |
| Who is responsible for preparing the President's budget which includes appropriations to influential foreign policy executive agencies | Council of Economic Advisors/National Economic Council |
| What is the principal foreign policy department in the executive branch | The Department of State |
| What is the evidence used to argue the armed forces are under 'civilian control' | The military responds to the command of the president |
| What do the Committee on Foreign Affairs (House) and the Foreign Relations Committee (Senate) do? | Lead foreign policy legislation and debate |
| What are the House and Senate Intelligence Agencies in charge of | Gathering information from public or semipublic sources |
| How can federal judges influence foreign policy | They rule on proposed foreign policy |
| What organization provides financial assistance to businesses in developing countries | The World Bank |
| What are economic sanctions used for | To show a disapproval by a nation to another in hopes of influencing their legislation |
| What is the responsibility of the International Monetary Fund | To help countries manage budget deficits and control the value of their currency |
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