Absolute (Money) Price

Factor Price Taker A firm that can buy all
of a factor it wants at the equilibrium price.
It faces a horizontal (flat, perfectly elastic)
supply curve of factors.
Federal Funds Market A market where
banks lend reserves to one another, usually
for short periods.
Federal Funds Rate The interest rate
in the federal funds market; the interest
rate banks charge one another to borrow
reserves.
Federal Funds Rate Target The interest
rate that the Fed wants the federal funds
market rate to be.
Federal Open Market Committee
(FOMC) The 12-member policy-making
group in the Fed. The committee has
the authority to conduct open market
operations.
Federal Reserve Notes Paper money
issued by the Federal Reserve.
Federal Reserve System (the Fed) The
central bank of the United States.
Final Good A good in the hands of its final
user.
Financial Intermediary A firm that
transfers funds from those who want to lend
funds to those who want to borrow funds.
Fine-Tuning The (usually frequent) use
of monetary and fiscal policies to counteract even small undesirable movements in
economic activity.
Fiscal Policy Changes in government
expenditures and/or taxes to achieve
economic goals, such as low unemployment,
stable prices, and economic growth.
Fixed Costs Costs that do not vary with
output; the costs associated with fixed
inputs.