chapter # 6 - how the markets work - supply
... (a) Using a correctly labeled graph of the loanable funds market, show the effect of the increase in Country A’s budget deficit on the real interest rate. (b) Given your answer in (a), what is the effect on business investment in Country A? (c) The exchange rate between Country A’s dollar and Countr ...
... (a) Using a correctly labeled graph of the loanable funds market, show the effect of the increase in Country A’s budget deficit on the real interest rate. (b) Given your answer in (a), what is the effect on business investment in Country A? (c) The exchange rate between Country A’s dollar and Countr ...
9 Keynes and money
... revolution in economic theory was truly a revolt against orthodox theory since it aimed at rejecting some basic mainstream axioms to provide a logical foundation for a non-Say’s Law model applicable to the real world in which we happen to live. Unfortunately, since Keynes, orthodox economists, seduc ...
... revolution in economic theory was truly a revolt against orthodox theory since it aimed at rejecting some basic mainstream axioms to provide a logical foundation for a non-Say’s Law model applicable to the real world in which we happen to live. Unfortunately, since Keynes, orthodox economists, seduc ...
General Equilibrium and IS-LM 1. Some points about IS
... point they intersect each other. • In many ways, the fights between the various groups in macroeconomics can be seen as fights regarding how these curves move in the short run or which two are the relevant two in the short run. ...
... point they intersect each other. • In many ways, the fights between the various groups in macroeconomics can be seen as fights regarding how these curves move in the short run or which two are the relevant two in the short run. ...
(classical) theory of the demand for money
... • How would you expect velocity to typically behave over the business cycle? ...
... • How would you expect velocity to typically behave over the business cycle? ...
Quasi-Commodity Money
... may consist of something that has a nonmonetary use or uses, but is only contingently rather than absolutely or “naturally” scarce. An example would be a durable good which, though capable of being reproduced at zero marginal cost, is rendered scarce by having rights to it, or to the technology need ...
... may consist of something that has a nonmonetary use or uses, but is only contingently rather than absolutely or “naturally” scarce. An example would be a durable good which, though capable of being reproduced at zero marginal cost, is rendered scarce by having rights to it, or to the technology need ...