Fiscal Policy

Mind Map by amandabraden, updated more than 1 year ago
Created by amandabraden over 6 years ago



Resource summary

Fiscal Policy
  1. Goals: increase economic growth, having less taxes. Limits: difficult to change spending levels.
    1. Classical economics: Free market regulate themselves
      1. Causes: Government spends more than it collects
        1. Monetary Policy
          1. split into two parts and the first part is History: Federal Reserve Act of 1913. Structure: the twelve district banks
            1. Functions of the Fed is broke into four parts. Serve Government which is checking account, Serve Banks clearing checks, Regulate Banks examines banks, Regulate Money Supply demand for money.
              1. to control the money supply by increasing an decreasing
                1. Economic Stability: Interest rate, money supply
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