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Ecomics (Price theory (Types of Goods (Inferior: When a products demand…

- - - - Reserve Requirement: low reserve= expansionary and high reserve= contractionary
      - Discount Rate: the Interest the FED gives the banks on loans. Cheaper than other interest rates.
      - Open Market Operations: FED buying and selling treasury bonds Buy= expansionary. selling= contractionary
      - Paying Interest on Excess Reserves: High rates= contractionary. Low rates=expansionary (interest)
  - - - Pros: allowed banks to make money like never before
      - Cons: Banks started to abuse power and filled the with risky mortgages causing them to default.
- - - - Measurement of usefulness and happiness a product.
- - - - Marginal tax rates/brackets