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Slide 1
Slide 1

Classical – Neoclassical Economics
Classical – Neoclassical Economics

... •Champion of birth control, women’s rights, free love •Military nihilist (Sweden can’t defend self  disband army) •Jailed for sacrilege •Established marginal productivity theory of distribution • Competition: Linear homogeneous (Cobb-Douglas) production function ...
Jeopardy - lc
Jeopardy - lc

Quantitative Easing New York Times blog
Quantitative Easing New York Times blog

Government and Money
Government and Money

... which is rapidly rising prices. Goods cost more, so people get less for their money. The government's fiscal policy is a powerful tool to guide the nation's economy. Fiscal policy is the federal government's spending and taxing policy, which is designed to keep everyone employed and prices stable. I ...
Review - Leon County Schools
Review - Leon County Schools

... 1. how much a bank must hold of checkable deposits (i.e. 10% ; I deposit $100 into my account, the bank must hold 10% of that deposit and are permitted to loan out 90% or in this case $90) ...
Talk: Macro Equilibrium
Talk: Macro Equilibrium

Money Market - Effingham County Schools
Money Market - Effingham County Schools

... + Money Market Mutual Funds + Money Mkt Deposit Accounts M3: M1 + M2 + large time deposits (>$100k) ...
Improved inflation outlook but a tight stance is still needed
Improved inflation outlook but a tight stance is still needed

... is clearly dependent on the willingness of global investors and creditors to finance its deficit. Accordingly, the economy is more exposed to shifts in global financial markets and their responses to news, correct or otherwise, about its performance. Events in the first months of this year should st ...
ID A - UTRGV Faculty Web
ID A - UTRGV Faculty Web

Chapter 24 The Keynesian Framework Chapter 25 The IS-LM World
Chapter 24 The Keynesian Framework Chapter 25 The IS-LM World

... Keynesians assume that the quantity of loanable funds does not change when monetary supply is adjusted (reduced/increased) Monetarists and Rational Expectations suggest that when money supply is increased, inflationary expectations rise which cause a higher demand for loanable funds This shifts the ...
Section 2 - What Are the Origins of Modern Fiscal and Monetary
Section 2 - What Are the Origins of Modern Fiscal and Monetary

... producers and consumers in a free market. Recessions were thought to be caused by events outside the market, such as wars and crop failures. Given time, the market would adjust and return to equilibrium. Classical economists believed that the government’s role in the economy should be minimal. Fisca ...
Practice Test – Chapters 11,12,13, Multiple Choice Identify the
Practice Test – Chapters 11,12,13, Multiple Choice Identify the

... A) money market mutual fund balances B) money market deposit accounts deposits Answer: D ...
A rise in the price of oil imports has resulted in a decrease of short
A rise in the price of oil imports has resulted in a decrease of short

... a. the current actual unemployment rate is greater than the natural unemployment rate. b. the current actual unemployment rate is less than the natural unemployment rate. c. the current actual unemployment rate equals the natural unemployment rate. d. the relationship between actual unemployment and ...
Due Date: Thursday, September 8th (at the beginning of class)
Due Date: Thursday, September 8th (at the beginning of class)

... 2) Assume that the demand for real money is (M/P)d = 0.6*Y – 100i, where Y is national income and i is the nominal interest rate. The real interest rate r is fixed at 3 percent by the investment and saving functions. The expected inflation rate equals the rate of nominal money growth. a) If Y is 100 ...
Quarterly Review and Outlook - Hoisington Investment Management
Quarterly Review and Outlook - Hoisington Investment Management

Monetary-Policy
Monetary-Policy

quiz no.6 - Kuwait University - College of Business Administration
quiz no.6 - Kuwait University - College of Business Administration

Administrative Details
Administrative Details

... Will Rogers, "there are two things that can disrupt the American economy. One is a war. The other is a meeting of the Federal Reserve Board." ...
The Transmission Mechanism for Monetary Policy
The Transmission Mechanism for Monetary Policy

... therefore reduce consumption (although this effect may be partially or fully offset by the increased income for savings). Furthermore, they reduce the value of assets, which impacts negatively on wealth and therefore consumption. Lower asset prices also reduce the value of collateral and therefore r ...
The Fed and The Interest Rates
The Fed and The Interest Rates

... • The central bank (Fed) funds rate is the interbank lending rate. • The interbank lending rate represent the primary cost of shortterm loanable funds. • The Fed (CB) rate: 1. It measures the return on the most liquid of all financial assets. 2. It is closely related to monetary policy. 3. It direct ...
West Orange High School
West Orange High School

... Initially the course will explore economics from both “micro” and “macro” perspectives. Students will gain an understanding of how scarcity requires individuals and institutions to make choices about how to use resources, how businesses interact with society, and gain an understanding of the charact ...
Problem Set 3 Answers - University of Wisconsin–Madison
Problem Set 3 Answers - University of Wisconsin–Madison

... dramatically because individuals and firms with the riskiest investment projects are the ones who are most willing to pay higher interest rates. A sharp rise in interest rates which increases adverse selection means that lenders will be more reluctant to lend, leading to a financial crisis in which ...
Fiscal Year
Fiscal Year

... 1. It is unpopular to raise taxes or cut government spending. So, elected officials worried about re-election rarely do either. Ex. In 1984, Walter Mondale ran for president saying a slight tax increase would help equalize the U.S. economy. Ronald Regan defeated him in one of the biggest landslides ...
Contemporary American History 1st Quarter Exam
Contemporary American History 1st Quarter Exam

... c) sells its labor in order to make a living d) can be achieved by anyone who just works hard enough 30. In our notes, we defined the working class as those who… a) make less than $50 thousand / year b) make less than $12 / hour c) work in factories and industries d) sell their labor to make a livin ...
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Money supply

In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific time. There are several ways to define ""money,"" but standard measures usually include currency in circulation and demand deposits (depositors' easily accessed assets on the books of financial institutions).Money supply data are recorded and published, usually by the government or the central bank of the country. Public and private sector analysts have long monitored changes in money supply because of its effects on the price level, inflation, the exchange rate and the business cycle.That relation between money and prices is historically associated with the quantity theory of money. There is strong empirical evidence of a direct relation between money-supply growth and long-term price inflation, at least for rapid increases in the amount of money in the economy. For example, a country such as Zimbabwe which saw extremely rapid increases in its money supply also saw extremely rapid increases in prices (hyperinflation). This is one reason for the reliance on monetary policy as a means of controlling inflation.The nature of this causal chain is the subject of contention. Some heterodox economists argue that the money supply is endogenous (determined by the workings of the economy, not by the central bank) and that the sources of inflation must be found in the distributional structure of the economy.In addition, those economists seeing the central bank's control over the money supply as feeble say that there are two weak links between the growth of the money supply and the inflation rate. First, in the aftermath of a recession, when many resources are underutilized, an increase in the money supply can cause a sustained increase in real production instead of inflation. Second, if the velocity of money (i.e., the ratio between nominal GDP and money supply) changes, an increase in the money supply could have either no effect, an exaggerated effect, or an unpredictable effect on the growth of nominal GDP.
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