Effects of Monetary Policy
0.0(0)
Studied by 0 people
View linked note
Learn
Practice Test
Spaced Repetition
Match
FlashcardsCard Sorting
1/6
There's no tags or description
Looks like no tags are added yet.
Study Analytics
Name | Mastery | Learn | Test | Matching | Spaced |
|---|
No study sessions yet.
7 Terms
1
New cards
Easy Money Policy
A policy implemented by the Federal Reserve (FED) to lower interest rates and increase the money supply to stimulate economic growth.
2
New cards
Tight Money Policy
A policy implemented by the Federal Reserve (FED) to raise interest rates and decrease the money supply to slow down economic growth.
3
New cards
Inside Lags
The time it takes to formulate a policy, including the recognition lag and law-making lag.
4
New cards
Recognition Lag
The time it takes to determine that a fiscal policy action is needed to address economic conditions.
5
New cards
Law-making Lag
The time it takes for Congress to pass the laws necessary to adjust taxes and government spending as part of fiscal policy.
6
New cards
Outside Lag
The time it takes to implement a policy and observe its effects, including the impact lag.
7
New cards
Impact Lag
The time it takes from the passage of a tax or spending change to see its effect on the economy.
Flashcards (35)