
Powerpoint Presentation
... instead of letting prices adjust Fed chair Greenspan lowered the federal funds rate to 2%, then 1%. Now that the housing bubble is bursting, instead of letting prices adjust Fed chair Bernanke has lowered the federal funds rate to near zero. ...
... instead of letting prices adjust Fed chair Greenspan lowered the federal funds rate to 2%, then 1%. Now that the housing bubble is bursting, instead of letting prices adjust Fed chair Bernanke has lowered the federal funds rate to near zero. ...
Fiscal Policy:
... • The government spends more money because consumers cannot – keep companies running and workers employed. ...
... • The government spends more money because consumers cannot – keep companies running and workers employed. ...
Effect of Lower interest rates:
... • Aims to stimulate borrowing by banks and consumers... • Stimulate economy with increased economic activity... ...
... • Aims to stimulate borrowing by banks and consumers... • Stimulate economy with increased economic activity... ...
personal finance - De Smet Jesuit High School
... iv. Investors will invest in interest paying investments such as money markets, cd’s, and bonds because interest rates are higher. g. Federal Funds Rate: this is the rate the Fed charges normal banks to borrow money. They then turn around and lend it to us at a slightly higher rate (the bank’s mark ...
... iv. Investors will invest in interest paying investments such as money markets, cd’s, and bonds because interest rates are higher. g. Federal Funds Rate: this is the rate the Fed charges normal banks to borrow money. They then turn around and lend it to us at a slightly higher rate (the bank’s mark ...
here
... be in a “recession” A prolonged recession or one that is particularly severe is called a “depression” ...
... be in a “recession” A prolonged recession or one that is particularly severe is called a “depression” ...
Demand Side Economics
... It can either spend more money than it makes (deficit financing) or It can spend less money than it makes.(surplus financing) ...
... It can either spend more money than it makes (deficit financing) or It can spend less money than it makes.(surplus financing) ...
UK Households - Economics Today
... • In search of short-run economic growth, the Bank of England has tried to encourage consumption, rather than saving. Very low interest rates have encouraged speculation, asset bubbles, a huge trade deficit and record levels of household debt. • Investment, not consumption, is the key to creating m ...
... • In search of short-run economic growth, the Bank of England has tried to encourage consumption, rather than saving. Very low interest rates have encouraged speculation, asset bubbles, a huge trade deficit and record levels of household debt. • Investment, not consumption, is the key to creating m ...
Keynesian Economics Slides
... Money plays a key role in the economy. The use of money leads to uncertainty, and makes “piercing the veil” impossible. A money economy is fundamentally different from a barter economy. The classical dichotomy ...
... Money plays a key role in the economy. The use of money leads to uncertainty, and makes “piercing the veil” impossible. A money economy is fundamentally different from a barter economy. The classical dichotomy ...
INTERNATIONAL MARKETING ECONOMICS
... His is a development of the work by Smith on absolute advantage Ricado posed a question ‘what will happne if a country has the absolute advantage in both products?’ In any case there is always a possibilioty that, the country might be more efficient in one product when compared with the other countr ...
... His is a development of the work by Smith on absolute advantage Ricado posed a question ‘what will happne if a country has the absolute advantage in both products?’ In any case there is always a possibilioty that, the country might be more efficient in one product when compared with the other countr ...
Why Austrian Economics Matters
... within economics, but an alternative way of looking at the entire science. Whereas other schools rely primarily on idealized mathematical models of the economy, and suggest ways the government can make the world conform, Austrian theory is more realistic and thus more socially scientific. Austrians ...
... within economics, but an alternative way of looking at the entire science. Whereas other schools rely primarily on idealized mathematical models of the economy, and suggest ways the government can make the world conform, Austrian theory is more realistic and thus more socially scientific. Austrians ...
Macroeconomic Theory - Thompson Rivers University
... The classical view was the predominant view of the period ...
... The classical view was the predominant view of the period ...
Revision Points for The Impact of Interest Rates
... paying for it in smaller regular amounts over a period of time in the future. ...
... paying for it in smaller regular amounts over a period of time in the future. ...
The Economic Theories all in one
... • Austrians Believe in unfettered markets • Price is driven by consumer preference not the supply and demand( Classical) or the cost of production (Keynes) • Private property is absolute-competition works • No government intervention period• Do not agree with Federal Reserve and monetary policy ...
... • Austrians Believe in unfettered markets • Price is driven by consumer preference not the supply and demand( Classical) or the cost of production (Keynes) • Private property is absolute-competition works • No government intervention period• Do not agree with Federal Reserve and monetary policy ...
File - Critical Thinking is Required
... • Amount of money the buyer is willing to spend. • The interaction between the buyer and seller brings about the ruling price in the market. • Supply and demand. ▫ If supply increased, price lowers. ▫ If demand increases, price rises. ...
... • Amount of money the buyer is willing to spend. • The interaction between the buyer and seller brings about the ruling price in the market. • Supply and demand. ▫ If supply increased, price lowers. ▫ If demand increases, price rises. ...
Economic Instabilty Ch. 14, sect. 1
... 25% of all workers in U.S. were unemployed; Avg. manufacturing wage dropped from 55 cents to 5 cents an hour. Bank failures; low money supply led to ...
... 25% of all workers in U.S. were unemployed; Avg. manufacturing wage dropped from 55 cents to 5 cents an hour. Bank failures; low money supply led to ...
Business Cycles 10.2
... Expansion—A period of economic expansion and growth. Peak—A high point at which the economy is at its strongest and most ...
... Expansion—A period of economic expansion and growth. Peak—A high point at which the economy is at its strongest and most ...
Economic Depressions: Their Cause and Cure
... which are theoretically redeemable on demand in gold, but in practice clearly are not. For example, if a bank has 1000 ounces of gold in its vaults, and it issues instantly redeemable warehouse receipts for 2500 ounces of gold, then it clearly has issued 1500 ounces more than it can possibly redeem. ...
... which are theoretically redeemable on demand in gold, but in practice clearly are not. For example, if a bank has 1000 ounces of gold in its vaults, and it issues instantly redeemable warehouse receipts for 2500 ounces of gold, then it clearly has issued 1500 ounces more than it can possibly redeem. ...
Deflation, Globalization and the New Paradigm of Monetary
... undoing damage that deflation has done in increasing real value of debt ...
... undoing damage that deflation has done in increasing real value of debt ...
Quiz 9
... (2) 1. Which of the following is true according to The Economist? a. The US federal government can end the financial crisis in the US by adding layers of new regulations on financial institutions b. An expected increase in state and local government spending will help keep the US economy our of rece ...
... (2) 1. Which of the following is true according to The Economist? a. The US federal government can end the financial crisis in the US by adding layers of new regulations on financial institutions b. An expected increase in state and local government spending will help keep the US economy our of rece ...
The Business Cycle
... As a result they tend to be buying goods and services. This keeps the economy strong. This period will see the highest levels of inflation as producers try to slowly increase their prices in order to get a bigger share of the thriving market. ...
... As a result they tend to be buying goods and services. This keeps the economy strong. This period will see the highest levels of inflation as producers try to slowly increase their prices in order to get a bigger share of the thriving market. ...
Depression in Finland in the early 1990s
... It is dangerous to base policy too much on past experience or of fighting the last war: decision makers were ready to fight hard for the fixed exchange rate because of their interpretation that past devaluations had been useless. However, even if that view would be correct (which is open to debate), ...
... It is dangerous to base policy too much on past experience or of fighting the last war: decision makers were ready to fight hard for the fixed exchange rate because of their interpretation that past devaluations had been useless. However, even if that view would be correct (which is open to debate), ...
How do we mea sure economic activity
... large corporations Discount Rate- the rate financial institutions are charged to borrow funds from the federal reserve banks T-Bill- the yield on short term U.S. Government debt obligations (13-week) Treasury Bond Rate- the yield on long term U.S. Government debt obligations (up to 30 years) ...
... large corporations Discount Rate- the rate financial institutions are charged to borrow funds from the federal reserve banks T-Bill- the yield on short term U.S. Government debt obligations (13-week) Treasury Bond Rate- the yield on long term U.S. Government debt obligations (up to 30 years) ...