Money, Liquidity
... • The liquidity of an asset refers to how easy it is to trade it or convert it into money, by selling it, borrowing against it, etc. Liquid assets should have low transaction costs a predictable value, thick markets, and come in standard form. And it should be easy to buy or sell them without having ...
... • The liquidity of an asset refers to how easy it is to trade it or convert it into money, by selling it, borrowing against it, etc. Liquid assets should have low transaction costs a predictable value, thick markets, and come in standard form. And it should be easy to buy or sell them without having ...
Exam questions first prelim ECON 102
... corner," he said. Consumer prices rose 3.4 percent last year, but were up at a more subdued pace of 2.2 percent once food and energy costs were stripped out -- a level that some Fed policy-makers may see as at the top of their tolerance range. Explain how the interest rates could boost or hinder eco ...
... corner," he said. Consumer prices rose 3.4 percent last year, but were up at a more subdued pace of 2.2 percent once food and energy costs were stripped out -- a level that some Fed policy-makers may see as at the top of their tolerance range. Explain how the interest rates could boost or hinder eco ...
STUDY QUESTIONS FOR QUIZ 1 File
... The “expected real” interest rate is the (a) rate actually quoted in financial markets. (b) rate actually quoted in financial markets minus the expected inflation rate. (c) rate actually quoted in financial markets plus the expected inflation rate. (d) rate actually quoted in financial markets divid ...
... The “expected real” interest rate is the (a) rate actually quoted in financial markets. (b) rate actually quoted in financial markets minus the expected inflation rate. (c) rate actually quoted in financial markets plus the expected inflation rate. (d) rate actually quoted in financial markets divid ...
SEMESTER
... long run; The Natural rate of Unemployment Hypothesis; Tobin's modified Philips Curve. Inflation and Indian Economy; RBI's Policies to control Inflation; ...
... long run; The Natural rate of Unemployment Hypothesis; Tobin's modified Philips Curve. Inflation and Indian Economy; RBI's Policies to control Inflation; ...
AP Macro-Economics
... A. Money and banking and financial markets 1. Definition of money and its creation a. functions of money b. what backs the money supply? 1. money as debt 2. value of money (present and future value) 3. money and prices 4. measures of the money supply c. maintaining money’s value d. the United States ...
... A. Money and banking and financial markets 1. Definition of money and its creation a. functions of money b. what backs the money supply? 1. money as debt 2. value of money (present and future value) 3. money and prices 4. measures of the money supply c. maintaining money’s value d. the United States ...
Chapter 23 Transmission Mechanisms of Monetary Policy
... • Avoiding unanticipated fluctuations in the price level is an important objective of monetary policy, thus providing a rationale for price stability as the primary long-run goal for monetary policy ...
... • Avoiding unanticipated fluctuations in the price level is an important objective of monetary policy, thus providing a rationale for price stability as the primary long-run goal for monetary policy ...
Unemployment and Inflation
... • It is the lowest possible unemployment rate with the economy growing (maximum potential employment) . • It takes into account unavoidable unemployment such as structural, frictional and seasonal, but not cyclical. • The full employment rate is considered to be about 5% unemployed. ...
... • It is the lowest possible unemployment rate with the economy growing (maximum potential employment) . • It takes into account unavoidable unemployment such as structural, frictional and seasonal, but not cyclical. • The full employment rate is considered to be about 5% unemployed. ...
Chapter 1
... to the problems of combining a stock equilibrium (the LM curve) with a flow equilibrium (the IS curve) as well as the model’s contradictory demand for a real and nominal interest rate while Moggridge (1976) warned students that the model downplayed dramatically Keynes’s emphasis upon uncertainty – a ...
... to the problems of combining a stock equilibrium (the LM curve) with a flow equilibrium (the IS curve) as well as the model’s contradictory demand for a real and nominal interest rate while Moggridge (1976) warned students that the model downplayed dramatically Keynes’s emphasis upon uncertainty – a ...
econ 325 radical economics
... is needed is a credible borrower. – Banks obtain cash and required reserves from the central bank as a consequence of loan-creation. ...
... is needed is a credible borrower. – Banks obtain cash and required reserves from the central bank as a consequence of loan-creation. ...
14.02 PRINCIPLES OF MACROECONOMICS QUIZ 1 READ INSTRUCTIONS FIRST:
... c. Large fluctuations in energy prices (especially oil). d. All of the above. 4. Which of the following actions will always lead to an increase in the investment level in the economy? a. The Federal Reserve Board buys more bonds through open market operations. b. The federal government reduces its d ...
... c. Large fluctuations in energy prices (especially oil). d. All of the above. 4. Which of the following actions will always lead to an increase in the investment level in the economy? a. The Federal Reserve Board buys more bonds through open market operations. b. The federal government reduces its d ...
Macroeconomic Theory Solutions to Problem Set 1
... Point values per problem in [ ]. Total possible: 124. Ch. 3 #5 [8] a. Taking the derivative of Y with respect to G in equation 3.7 gives 1/(1-c1). b. The derivative wrt T is -c1/(1-c1). c. Spending effects demand directly, but taxes affect demand through consumption, and the propensity to consume is ...
... Point values per problem in [ ]. Total possible: 124. Ch. 3 #5 [8] a. Taking the derivative of Y with respect to G in equation 3.7 gives 1/(1-c1). b. The derivative wrt T is -c1/(1-c1). c. Spending effects demand directly, but taxes affect demand through consumption, and the propensity to consume is ...
March 12, 2004
... Suppose that the target reserve ratio across the entire banking system is 4%. If there are no excess reserves, then a Bank of Canada purchase of $100 million in bonds will (eventually): A) decrease reserves by $100 million and decrease money supply by $400 million B) decrease reserves by $100 millio ...
... Suppose that the target reserve ratio across the entire banking system is 4%. If there are no excess reserves, then a Bank of Canada purchase of $100 million in bonds will (eventually): A) decrease reserves by $100 million and decrease money supply by $400 million B) decrease reserves by $100 millio ...
