Problem Sheet 1
... interest rates. The quantity theory says that in the long run, inflation increases one-to-one with money supply growth. It follows that differences in nominal interest rates may be due to differences in inflation rates. There may be some difference in real interest rates, but if we suppose these are ...
... interest rates. The quantity theory says that in the long run, inflation increases one-to-one with money supply growth. It follows that differences in nominal interest rates may be due to differences in inflation rates. There may be some difference in real interest rates, but if we suppose these are ...
SIMON FRASER UNIVERSITY Department of Economics Econ 345 Prof. Kasa
... to illustrate your answer. How could you tell whether China was indeed sterilizing? Are there any costs to China from pursuing this policy? Notice what happened in the previous question. As the US money supply increased, so did China’s. This might be good for China if China is also in a recession. H ...
... to illustrate your answer. How could you tell whether China was indeed sterilizing? Are there any costs to China from pursuing this policy? Notice what happened in the previous question. As the US money supply increased, so did China’s. This might be good for China if China is also in a recession. H ...
Graphing Symbols
... AS or SRAS aggregate supply (short run) LRAS aggregate supply, long run GDPf (Qf)/FE full employment GDP T taxes i or ir interest rate (%) (lower case i is usually nominal interest) DM/MD demand for money or money demand SM/MS supply of money or money supply DLF demand for Loanable Funds SLF supply ...
... AS or SRAS aggregate supply (short run) LRAS aggregate supply, long run GDPf (Qf)/FE full employment GDP T taxes i or ir interest rate (%) (lower case i is usually nominal interest) DM/MD demand for money or money demand SM/MS supply of money or money supply DLF demand for Loanable Funds SLF supply ...
Midterm
... 13. According to the uncovered interest rate parity, the dollar depreciates when the European Central Bank raises the short-term interest rate, all else equal. 14. According to the uncovered interest rate parity, the dollar dereciates when the European Central Bank is expected to raise the short-ter ...
... 13. According to the uncovered interest rate parity, the dollar depreciates when the European Central Bank raises the short-term interest rate, all else equal. 14. According to the uncovered interest rate parity, the dollar dereciates when the European Central Bank is expected to raise the short-ter ...
Goal 9 Study Guide
... 13. If the Fed wants to stimulate the economy, what might it do to the discount rate, the reserve requirement, or open market operations? 14. If the Fed increases the money supply, what will happen to the interest rates at banks? Chapter 25.1 The Federal Budget Define the following terms: 1. budget ...
... 13. If the Fed wants to stimulate the economy, what might it do to the discount rate, the reserve requirement, or open market operations? 14. If the Fed increases the money supply, what will happen to the interest rates at banks? Chapter 25.1 The Federal Budget Define the following terms: 1. budget ...
(i) > 0
... factor market transactions) that is sufficient to give spending units the wherewithal purchase the output at prices that would enable firms to cover their costs of production (including a normal profit). ...
... factor market transactions) that is sufficient to give spending units the wherewithal purchase the output at prices that would enable firms to cover their costs of production (including a normal profit). ...
Supply and Demand Models of Financial Markets
... • Why does the supply curve slope up? – When real interest rates offered by banks are high, savers are rewarded with more future consumption and are likely to be induced to save more. – Caveat: If some savers are setting a target for their level of wealth at retirement, a higher interest rate reduce ...
... • Why does the supply curve slope up? – When real interest rates offered by banks are high, savers are rewarded with more future consumption and are likely to be induced to save more. – Caveat: If some savers are setting a target for their level of wealth at retirement, a higher interest rate reduce ...
Government and other non-market producers` owned assets
... • Measuring non-market output by proxy of costs; capital services (user cost times volume of services) better measure than decline in asset value ...
... • Measuring non-market output by proxy of costs; capital services (user cost times volume of services) better measure than decline in asset value ...
final exam review packet with answers for jan 2014 exam
... Ch 14- The Federal Reserve and Monetary Policy *Federal Reserve System (“The Fed”)- main function of? -to maintain a stable $ supply; raise and lower interest rates as it sees fit (if want to motivate people to spend= lower interest rates) *Reserve Requirement- banks must keep 10% of all deposits i ...
... Ch 14- The Federal Reserve and Monetary Policy *Federal Reserve System (“The Fed”)- main function of? -to maintain a stable $ supply; raise and lower interest rates as it sees fit (if want to motivate people to spend= lower interest rates) *Reserve Requirement- banks must keep 10% of all deposits i ...
Graphs for Macroeconomics Production Possibilities Curve G o
... Freely floating (flexible) exchange rates The demand for any currency is down $ Price of sloping because as the currency becomes Foreign less expensive to obtain, people will be able Currency to buy more of that nation’s Goods & Services and therefore need more of that currency. The supply is upslop ...
... Freely floating (flexible) exchange rates The demand for any currency is down $ Price of sloping because as the currency becomes Foreign less expensive to obtain, people will be able Currency to buy more of that nation’s Goods & Services and therefore need more of that currency. The supply is upslop ...
Bank of England Inflation Report August 2012
... Sources: Bank of England, JPMorgan Chase & Co., Markit Group Limited and Bank calculations. (a) Sterling only. Spread over the three-year swap rate. The three-year retail bond rate is a weighted average of rates from banks and building societies within the Bank of England’s normal quoted rate sample ...
... Sources: Bank of England, JPMorgan Chase & Co., Markit Group Limited and Bank calculations. (a) Sterling only. Spread over the three-year swap rate. The three-year retail bond rate is a weighted average of rates from banks and building societies within the Bank of England’s normal quoted rate sample ...
Document
... 4. Jack and Jill both obey the two-period model of consumption. Jack earns $200 in the first period and $200 in the second period. Jill earns nothing in the first period and $420 in the second period. Both of them can borrow or lend at the interest rate. r? a. You observe both Jack and Jill consumin ...
... 4. Jack and Jill both obey the two-period model of consumption. Jack earns $200 in the first period and $200 in the second period. Jill earns nothing in the first period and $420 in the second period. Both of them can borrow or lend at the interest rate. r? a. You observe both Jack and Jill consumin ...
Ancients/Mercantilists/Physiocrats
... rate of interest when the steps are taken discretely, and thus pay off the State debt. But these refinements which open the door to making large fortunes are rarely undertaken for the sole advantage of the State…The excess of banknotes do not upset the circulation, because being used for the buying ...
... rate of interest when the steps are taken discretely, and thus pay off the State debt. But these refinements which open the door to making large fortunes are rarely undertaken for the sole advantage of the State…The excess of banknotes do not upset the circulation, because being used for the buying ...
module 31 - Dpatterson
... monetary policy looks backward (future inflation rates versus current) • + infl. Targ= transparent and accountable (can know the rate and see how close they are) • - too restrictive, not focused on stability of financial system ...
... monetary policy looks backward (future inflation rates versus current) • + infl. Targ= transparent and accountable (can know the rate and see how close they are) • - too restrictive, not focused on stability of financial system ...