Econ 2 UT3 F16 - Bakersfield College
... b. straight flat across. c. shaped like a slanted c. d. that was straight and sloping down at a -45 degree angle. ...
... b. straight flat across. c. shaped like a slanted c. d. that was straight and sloping down at a -45 degree angle. ...
ECN 111 Chapter 13 Lecture Notes
... percent increase in the quantity of money demanded at each nominal interest rate. 2. Real GDP An increase in real GDP increases the demand for money. 3. Financial Technology Changes in financial technology can increase the demand for money (ATMs) or decrease the demand for money (credit cards). E. S ...
... percent increase in the quantity of money demanded at each nominal interest rate. 2. Real GDP An increase in real GDP increases the demand for money. 3. Financial Technology Changes in financial technology can increase the demand for money (ATMs) or decrease the demand for money (credit cards). E. S ...
ECON 8121-001 Ad vanced Monetary Theory
... which are listed on this syllabus. Thus you should take the reading list as a list of material with which you may want to familiarize yourself at some point in your life (like before the comprehensive exam) and as a list containing some material with which you will want to familiarize yourself intim ...
... which are listed on this syllabus. Thus you should take the reading list as a list of material with which you may want to familiarize yourself at some point in your life (like before the comprehensive exam) and as a list containing some material with which you will want to familiarize yourself intim ...
FedViews
... agency debt and agency mortgage-backed securities will be around $250 billion to $300 billion over the same period. Taken together, the Desk anticipated that it would purchase $850 billion to $900 billion in longer-term Treasuries through the end of the second quarter of 2011. The FOMC also decided ...
... agency debt and agency mortgage-backed securities will be around $250 billion to $300 billion over the same period. Taken together, the Desk anticipated that it would purchase $850 billion to $900 billion in longer-term Treasuries through the end of the second quarter of 2011. The FOMC also decided ...
Outline of Lecture 1 – Basic Economics Concepts
... Case Study: Why the central bank watches the stock market (and vice versa) Stock market booms households become wealthier consumer spending It becomes attractive for firms to issue new shares of stock Investment spending Since one of the central bank’s goals is to stabilize AD The cent ...
... Case Study: Why the central bank watches the stock market (and vice versa) Stock market booms households become wealthier consumer spending It becomes attractive for firms to issue new shares of stock Investment spending Since one of the central bank’s goals is to stabilize AD The cent ...
1. The tax multiplier associated with a $10B reduction in taxes is
... This observation makes sense since our income tax system is progressive and therefore ___________. This is also consistent with ____________. a. takes a higher percent of income, the greater one’s income – how automatic stabilizers work b. takes a lower percent of income, the greater one’s income – ...
... This observation makes sense since our income tax system is progressive and therefore ___________. This is also consistent with ____________. a. takes a higher percent of income, the greater one’s income – how automatic stabilizers work b. takes a lower percent of income, the greater one’s income – ...
Notes
... buys bonds (open-market purchase, or expansionary open market operation), and money supply decreases when Fed sells bonds (contractionary open market operation). OMO will change the balance sheet of Fed. See Figure 4-5. Note that money is asset for everyone, except Fed. Money is liability for Fed! B ...
... buys bonds (open-market purchase, or expansionary open market operation), and money supply decreases when Fed sells bonds (contractionary open market operation). OMO will change the balance sheet of Fed. See Figure 4-5. Note that money is asset for everyone, except Fed. Money is liability for Fed! B ...
World Bank Integrated Model
... must be very careful with its use. A precise diagnosis has to be made, especially in regard to the initial situation and the structure for each country. In the case of Russia, it had certainly not been done and the economic policies recommended by IMF led to disappointing issues : (i) the bank credi ...
... must be very careful with its use. A precise diagnosis has to be made, especially in regard to the initial situation and the structure for each country. In the case of Russia, it had certainly not been done and the economic policies recommended by IMF led to disappointing issues : (i) the bank credi ...
Word Document
... Say’s Law – total supply of goods and services will equal total demand derived from consumption; a general glut (economy-wide over-supply) is impossible money illusion – nominal vs. real confusion (wages or prices) crowding out – fiscal policy is ineffective because a rise in government spendi ...
... Say’s Law – total supply of goods and services will equal total demand derived from consumption; a general glut (economy-wide over-supply) is impossible money illusion – nominal vs. real confusion (wages or prices) crowding out – fiscal policy is ineffective because a rise in government spendi ...
Section 1: financial markets and global economic
... Sources: Pension Protection Fund and Bank calculations. (a) Zero-coupon spot rate derived from government bond prices. (b) Calculated as the aggregate value of pension fund assets less the value of their liabilities, divided by the total value of liabilities. Calculated on a S179 basis, which is the ...
... Sources: Pension Protection Fund and Bank calculations. (a) Zero-coupon spot rate derived from government bond prices. (b) Calculated as the aggregate value of pension fund assets less the value of their liabilities, divided by the total value of liabilities. Calculated on a S179 basis, which is the ...
Quiz 1: Fall 2011
... spending multipliers from very conventional macroeconomic models. We used simulations based on the realistic assumption that monetary policy would remain loose [ie, low interest rates], and on the assumption that people would treat the individual tax cut as permanent. This last assumption is justifi ...
... spending multipliers from very conventional macroeconomic models. We used simulations based on the realistic assumption that monetary policy would remain loose [ie, low interest rates], and on the assumption that people would treat the individual tax cut as permanent. This last assumption is justifi ...
° Money and Inflation Introduction Quantity Equation elQuantity
... depnds on expected future inflation. • So he nominal interest rate moves one for-one with the expected inflation rate. ...
... depnds on expected future inflation. • So he nominal interest rate moves one for-one with the expected inflation rate. ...
Inflation practice
... C. Avoid borrowing because one cannot determine how much one’s monthly payment would be D. Avoid borrowing because one would have to pay back the loan in more expensive dollars In general, when aggregate demand exceeds aggregate supply, which of these is MOST likely to result? A. Lower tax rates B. ...
... C. Avoid borrowing because one cannot determine how much one’s monthly payment would be D. Avoid borrowing because one would have to pay back the loan in more expensive dollars In general, when aggregate demand exceeds aggregate supply, which of these is MOST likely to result? A. Lower tax rates B. ...
Keynesian economics
... Major Keynesian invention that clashes with classical theory People hold money because (a) they expect the prices of stocks and bonds to fall in the near future, (b) are reluctant to hold only assets that tend to swing widely in value, and (c) believe that transaction costs are higher than any expec ...
... Major Keynesian invention that clashes with classical theory People hold money because (a) they expect the prices of stocks and bonds to fall in the near future, (b) are reluctant to hold only assets that tend to swing widely in value, and (c) believe that transaction costs are higher than any expec ...
Hegemonic Currencies during the Crisis: The Dollar versus the Euro
... currency, international holders may substitute it for an alternative asset and a crash follows. Conventional wisdom suggests that these crises tend to occur either because the state runs excessively large fiscal deficits (Krugman 1979) or as a result of a self-fulfilling prophesy (Flood and Garber 1 ...
... currency, international holders may substitute it for an alternative asset and a crash follows. Conventional wisdom suggests that these crises tend to occur either because the state runs excessively large fiscal deficits (Krugman 1979) or as a result of a self-fulfilling prophesy (Flood and Garber 1 ...
Macroeconomics
... nominal GDP for all three years and real GDP with base year 2003 . (12 Marks) b) Calculate the inflation rate for 2004 and 2005 using the GDP deflator. (8 Marks) c) Suppose a Consumer Price Index (CPI) is constructed using weights corresponding to quantities produced in 2003, what is the rate of inf ...
... nominal GDP for all three years and real GDP with base year 2003 . (12 Marks) b) Calculate the inflation rate for 2004 and 2005 using the GDP deflator. (8 Marks) c) Suppose a Consumer Price Index (CPI) is constructed using weights corresponding to quantities produced in 2003, what is the rate of inf ...
CHAPTER 15
... 2. The main argument for Fed independence is that monetary policy is too important to be determined by politicians. Because elections occur frequently, politicians may be mainly concerned with the short-run benefits rather than the long-run costs of their economic policies. Supporters of the Fed’s i ...
... 2. The main argument for Fed independence is that monetary policy is too important to be determined by politicians. Because elections occur frequently, politicians may be mainly concerned with the short-run benefits rather than the long-run costs of their economic policies. Supporters of the Fed’s i ...
SECTION 6: Inflation, Unemployment, & Stabilization Policies Need to Know Budget balance—savings by government—is defined by:
... Nominal rate = real rate + expected inflation Interest rates cannot fall below 0%, there is a zero bound. So deflation creates a situation where lenders receive nominal interest rates that approach zero. Lending will stop, monetary policy becomes completely ineffective. The Fed can’t lower the ...
... Nominal rate = real rate + expected inflation Interest rates cannot fall below 0%, there is a zero bound. So deflation creates a situation where lenders receive nominal interest rates that approach zero. Lending will stop, monetary policy becomes completely ineffective. The Fed can’t lower the ...
