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ECON 201-100 Principles of Macroeconomics
ECON 201-100 Principles of Macroeconomics

... (b) Discuss the theoretical developnent of concepts such as the supply curve and the demand curve and identify the principal assumptions on which these concepts are based . (c) Discuss with r eference to both economic theory and your knowledge of the U.S. economy, the statement that "private self-in ...
Federal Reserve - Plain Local Schools
Federal Reserve - Plain Local Schools

... $ Providing certain financial services to the US Govt., to the public, to financial institutions, and to foreign official institutions, including playing a major role in operating the nation’s payment system ...
MV=PQ questions - CHS Commerce Department
MV=PQ questions - CHS Commerce Department

Microfounded Macro:Graphical Illustrations
Microfounded Macro:Graphical Illustrations

...  Markets (prices) may not work automatically itself because of deficiency in demand: massive unemployment labour and under utilisation of capital is possible.  Cost of waiting to return to the natural level; irresponsible to do so.  Balancing budget is stupid and dangerous policy.  Active role b ...
Chapter 1 Personal Financial Planning
Chapter 1 Personal Financial Planning

Slides session 11 - Prof. Dr. Dennis Alexis Valin Dittrich
Slides session 11 - Prof. Dr. Dennis Alexis Valin Dittrich

Chapter 27 - Money and Banking
Chapter 27 - Money and Banking

The Quantity Theory of Money
The Quantity Theory of Money

... quantity of goods. This in turn bids up prices as the purchasing power of each dollar falls.  The end result will be a proportional increase in the price level, i.e. 15% increase in P. ...
Introductory Material (Handa, Chapter 1)
Introductory Material (Handa, Chapter 1)

... ultimate lenders to facilitate their interaction. • Banks, mutual funds, pension funds, insurance companies, etc. • Intermediaries often repackage assets through was is called the asset-transmutation process. • For example, banks may take “short money” as deposits and create “long money” for loans. ...
Chapter 17 Test Review - Garden City Public Schools
Chapter 17 Test Review - Garden City Public Schools

Options for Organizing Small and Large Businesses
Options for Organizing Small and Large Businesses

... drive supply and demand. Describe the four types of market structures in a private enterprise system and compare the three major types of economic systems. Identify and describe the four stages of the business cycle. Explain how productivity, price level changes, and employment levels affect the sta ...
Monetary Policy / The Fed / Banking
Monetary Policy / The Fed / Banking

... E. President Roosevelt declared a “bank holiday,” closing banks temporarily while Congress started the Federal Deposit Insurance Corporation (FDIC), which ended bank panics on insured accounts. Functions of Money A. Medium of exchange: Money can be used for buying and selling goods and services. B. ...
14.02 Principles of Macroeconomics
14.02 Principles of Macroeconomics

... False. The money multiplier is: . Since 0<θ<1, this is always greater than c + θ (1 − c) one if individuals in the economy hold both currency and checkable deposits (0
Monetary Policy
Monetary Policy

TOTAL SPENDING = TOTAL INCOME = GDP
TOTAL SPENDING = TOTAL INCOME = GDP

... has in mind in this chapter. (Friedman was one of the founders of monetarism.) This adds some sophistication to crude quantity theory, but essentially holds that changes in the money supply lead to more or less proportionate changes in prices in the long run, though not necessarily in the short run. ...
27-Evidence on Monetary Policy
27-Evidence on Monetary Policy

... Identify four policy decisions of Fed which led to tighter money supply during great depression. ...
Matching (2pts each)
Matching (2pts each)

... _____ 14. The minimum wage increases employment among teenagers and minorities. _____ 15. The President of the United States can prevent workers from striking for a period of 80 days. _____ 16. The measurement of the national economy’s performance is called national income accounting. _____ 17. Aggr ...
Chapter 3: America on the Eve of Revolution
Chapter 3: America on the Eve of Revolution

... Chapter 3: America on the Eve of Revolution Summary This chapter examines the monetary foundations of the colonial economy under English rule. Though England did follow a mercantilist policy and did not permit the flow of specie into the colonies without trade, piracy or accumulated indebtedness, th ...
File
File

Chapter 4 The Classical Model
Chapter 4 The Classical Model

Soustředění 4
Soustředění 4

... 4. paper money = developed from paper receipts that goldsmiths gave their clients, could be exchanged for precious metals, money was backed by gold 5. fiat money = money is given denomination by the government, is not backed by gold Bank notes and coins made of various metals became legal tender. Pa ...
Markets Are Usually a Good Way to Organize Economic Activity #7
Markets Are Usually a Good Way to Organize Economic Activity #7

Debates in Macroeconomics: Monetarism, New
Debates in Macroeconomics: Monetarism, New

Debates in Macroeconomics: Monetarism, New
Debates in Macroeconomics: Monetarism, New

Fractional Reserve Banking
Fractional Reserve Banking

... -$100,000 deposit with a 20% reserve requirement -$20,000 must go into required reserves -$80,000 goes into Excess Reserves and can be lent out -$80,000 loan is made to Jim -$80,000 deposit made by Jim with the loan proceeds -$16,000 must go into required reserves (20% of $80,000) -$64,000 goes into ...
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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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