Government Ch 14-15

Alana Neel
Flashcards by Alana Neel, updated more than 1 year ago
Alana Neel
Created by Alana Neel over 1 year ago


Flashcards on Government Ch 14-15, created by Alana Neel on 11/30/2018.

Resource summary

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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