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INCOME TAX: A tax on income, including wages, rent, interest, profit, and (usually) transfer payments. The income tax system in the United States includes both a personal income tax and corporate income tax. In general, the U. S. income tax is progressive, but through a number of deductions and other loopholes, it's less so in practice that on paper.
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Lesson 19: Money Creation | Unit 3: Modern Banking
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Page: 12 of 23
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- A purchase is made with a check written on the Amos National Bank.
- The store deposits the check in Bob's State Bank.
- Bob's Bank adds $90 worth of liabilities to the store's account.
- This liability is balanced with reserves transferred from Amos National Bank.
- Amos National losses $90 of reserves and Bob's Bank gains $90 of reserves.
- Amos National ends up with $10 of reserves and a $90 loan.
- Bob's Bank has $90 in reserves. It must keep 10% ($9), giving Bob's Bank $81 of excess reserves.
- Bob's Bank makes an $81 loan to a customer who wants to buy a CD player.
- Once again, this process creates $81 worth of money.
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MACROECONOMIC MARKETS Three sets of markets that make up the macroeconomy--product, financial, and resource--which exchange the three primary types of macroeconomic commodities--gross production, legal claims, and factor services. The four macroeconomic sectors--household, business, government, and foreign--interact through these three sets of markets. The primary objective of macroeconomic theories is to explain activity that takes place in these three sets of markets.
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BLUE PLACIDOLA
[What's This?]
Today, you are likely to spend a great deal of time searching for a specialty store seeking to buy either a small, foam rubber football or an instructional DVD on learning to the play the oboe. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
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This isn't me! What am I?
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Helping spur the U.S. industrial revolution, Thomas Edison patented nearly 1300 inventions, 300 of which came out of his Menlo Park "invention factory" during a four-year period.
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"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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BPEA
Brookings Papers on Economic Activity
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