Laundering Money The FedLegal Tender Dolla Billz All about the Benjamins, Baby

This characteristic of money forms the basis for the concept of velocity

Medium of Exchange

When an economic system has thousands of buyers and sellers

Pure Competition

This would most likely be the outcome long term if the Trans- Alaskan pipeline was shut down

Prices would rise globally and no oil shortage would develop

Difference between real and current GDP

Inflation is factored out for Real GDP

GDP growth slowing down would likely result in the lowering of these

Interest Rates

Increasing health, safety, and environmental regulations would likely decrease this

Productivity

Money’s scarcity in relation to its utility is the main way to determine the value of this type of money

Fiat Money

Putting coins in a jar is a way to illustrate money’s function as this

Store of value

If a merchant chooses to be paid in money instead of a commodity, this is their incentive for choosing money

Holding money has no opportunity cost

Is paying taxes a market transaction?

No

Because the federal government declares US currency to be legal tender, then the dollar is this type of money

Fiat money

This institution is responsible for controlling the US money supply

Federal Reserve

If the government goes toward a more restrictive monetary policy, they would do this to interest rate

Increase

If the government is not allowing a particular industry to have exclusive contracts with residents, then they are ensuring this

Ease of entry into industry, and price flexibility based on competition

Doing this to the monetary policy of the central bank would most likely lower inflation

Reducing the money supply

If the price of a good is inelastic, the government could do this to increase revenue

Add an excise tax

Lowering discount rates and buying securities on the open market would be something the Federal Reserve would do the counteract this

Recession

If a technological change permanently lowered the cost of electricity, this shift would occur

The aggregate supply curve would shift to the right

An increase in labor productivity would result in this

An increase in aggregate supply

Reason why unskilled labor in the US is paid less than skilled laborers

Human capital in the US surpasses that of workers in other countries

Decreasing income tax would be an example of this type of fiscal policy

Loose/ Expansionary

This institution is responsible for increasing and decreasing the money supply

Federal Reserve

This level of government spend more money on education than the national government

Local

The FED cannot do this to implement monetary policy

Just print more money

The Fed could do this to counteract inflation

Increase interest rates