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FEDERAL COMMUNICATIONS COMMISSION: An federal government agency established by the Communications Act of 1934 that is charged with regulating interstate and international communications by radio, television, wire, satellite and cable. This agency, commonly known by the acronym FCC, consists of five Commissioners appointed by the President and confirmed by the Senate. Each commissioner serves a 5-year term, except when filling an unexpired term. One of the regulatory forces in the marketing environment.

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Lesson 20: Federal Reserve System | Unit 4: Monetary Policy Page: 18 of 20

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  • That monetary policy is controlling the money creation activity of the fractional-reserve banking system to control deposits and the money supply.
  • That expansionary monetary policy increases aggregate demand up to full employment and contractionary monetary policy decreases aggregate demand back to full employment.
  • The four tools of monetary policy: open market operations, discount rate, reserve requirements, and moral suasion.
  • How open market operations are used by the Fed to control the money supply.
  • That the discount rate is used by the Fed to signal the intentions of the open market operations.
  • That reserve requirements are the regulations the Fed uses to ensure banks keep enough reserves to back deposits.
  • That moral suasion is a policy in which the Fed requests that the banking system take some sort of action.

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MARGINAL PROPENSITY FOR GOVERNMENT PURCHASES

The change in government purchases induced by a change in income or production (national income or gross domestic product). The marginal propensity for government purchases (abbreviated MPG) is another term for the slope of the government purchases line and is calculated as the change in government purchases divided by the change in income or production. The MPG plays a role in Keynesian economics. It augments the slope of the aggregate expenditures line and is part of the multiplier process. A related marginal measure is the marginal propensity to consume.

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Today, you are likely to spend a great deal of time driving to a factory outlet seeking to buy either a rim for your spare tire or decorative celebrity figurines. Be on the lookout for letters from the Internal Revenue Service.
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The Dow Jones family of stock market price indexes began with a simple average of 11 stock prices in 1884.
"Inside the ring or out, ain't nothing wrong with going down. It's staying down that's wrong. "

-- Muhammad Ali

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