Quiz 2: Economics: The Framework for Business
An Economy Is One That Includes a Financial System and Excludes
An economy is one that includes a financial system and excludes a social system.
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In the context of fiscal strategies, most economists agree that higher taxes can boost the economy by leaving more money with the government to spend during an economic crisis.
If spending is lower than revenue, the government incurs a budget deficit and must borrow money to cover the shortfall.
The discount rate is the interest rate the Fed charges on its loans to commercial banks.
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