ECN2801

Fall 2017                                             Review for Exam 3

Dr. Dao

 

·         Fiscal Policy

·         Marginal tax rate

·         Laffer Curve

·         Interest Rate Effect

·         Lags in Fiscal Policy

·         Supply side economics

·         Crowding Out

·         Expansionary Fiscal Policy

·         Transmission Lag

·         Effect of permanent marginal tax decrease on short-run aggregate supply (SRAS)

·         Effect of permanent marginal tax decrease on long-run aggregate supply (LRAS)

·         Complete Crowding Out

·         Excess Reserves

·         Bank’s Balance Sheet: Assets and Liabilities

·         Barter Economy

·         Store of Value function of money

·         Measures of Money Supply

·         Definition of Money

·         Medium of Exchange

·         Origin of fractional reserve banking

·         Definition of fractional reserve banking

·         Tools of Monetary Policy

·         Makeup of the Federal Open Market Committee (FOMC)

·         Effect of a Fed purchase of government securities on reserves and the money supply

·         Federal Funds Market

·         Discount Rate

·         What is meant by “lender of last resort”?

·         Locations of Federal Reserve Banks

·         Effect of Decrease in required reserve ratio

·         Term of governors of Federal Reserve System

·         Number of governors in the Board of Governors of the Fed

·         Number of members of the FOMC

·         Which Federal Reserve District Bank holds a permanent seat on the FOMC?

·         Effect of Lowering Discount Rate on reserves and the money supply

·         Formula for simple deposit multiplier