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Government - Coggle Diagram
Government
Trade
Deficit
The government spends more money than it makes
The U.S. imports more that it exports
The dollar's reserve status allows the Fed to keep spending money.
The U.S. dollar is the accepted as the exchange currency for international transactions
Cheap loans from other countries
Low interest rates
Provides jobs for other countries
Taxes
Revenue
Paid by individuals and businesses
The cost of goods and services increase
Due to government policy
Economic Stability
Equilibrium of supply/demand
U.S. dollars are always in demand by other countries
A strong trading position increases the value of currency
Federal Reserve
Prints money
Backed by gold
Inflation
Rising prices
Causes a recession so prices need to fall to balance the economy
The supply of goods and services are larger that the demand for them
Creates policies to get revenue in the form of taxes