Test 3 Flashcards
1
Q
Three functions of money
A
Medium of exchange
Stores value
Unit of account
2
Q
Composition of the fed?
A
Board of governors
12 district banks
Open market committee
Commercial banks
3
Q
Time lag problem
A
Recognition lag
Administrative lag
Impact lag
4
Q
Forecasting issues
A
Unexpected shocks
Past data doesn’t help
5
Q
What do economist agree on
A
Time issues
Expansionary policy cannot happen in the long run
6
Q
What do economists disagree on
A
Crowding out argument
Cut spending or taxes?
Fluctuations random shocks or bad policy
