Government

Expansionary policies

Economic policies aimed at increasing the overall level of economic activity, typically through increased government spending and/or lower taxes.

Contractionary policies

Economic policies intended to reduce economic activity, usually through decreased government spending and/or higher taxes.

Fiscal policy

The use of government spending and taxation to influence the economy.

Monetary policy

The process by which the central bank of a country manages the money supply to achieve specific goals, such as controlling inflation or stabilizing currency.

Progressive tax

A tax system where the tax rate increases as the taxable amount increases.

Regressive tax

A tax system where the tax rate decreases as the taxable amount increases, typically burdening lower income earners more.

Flat tax

A tax system with a constant marginal rate, usually applied to individual or corporate income.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

US Securities being sold

The transfer of ownership or disposal of financial instruments, like stocks, bonds, or options, that are traded in the US market. 

US securities being sold increases

Leads to a decrease in the money supply, slowing down economic growth and raising unemployment

US securities being sold decreases

It may signal lower investor confidence, leading to reduced capital for businesses, slower economic growth, and potential funding difficulties.

Discount Rates

The interest rates set by the Federal Reserve for lending to banks, influencing borrowing costs and overall economic activity.

Discount Rate increases

It becomes more expensive for banks to borrow money from the Fed, leading to a reduction in the money supply and potentially slower economic

Discount Rate decreases

Makes it cheaper for commercial banks to borrow money, stimulating economic growth but possibly higher inflation

Reserve Requirement %

The percentage of deposits banks must hold as reserves, set by the Federal Reserve, that they cannot lend out or invest.

Reserve Requirement % goes up

Banks hold more deposits in reserves, reducing money available for lending, which can decrease the money supply, raise interest rates, and slow economic growth.

Reserve Requirement % goes down

Banks hold less in reserve, increasing money available for lending, boosting the money supply, lowering interest rates, and stimulating economic growth.