Instructor`s class notes
... It describes two relationships that depend on different things Together the two curves determine the variables of interest o We extend that style of analysis to the macroeconomy here o Many examples: AD/AS with output and price level ...
... It describes two relationships that depend on different things Together the two curves determine the variables of interest o We extend that style of analysis to the macroeconomy here o Many examples: AD/AS with output and price level ...
Economics Principles and Applications
... – When all firms behave this way together a rise in wage rate will decrease quantity of labor demanded – This is why economy’s labor demand curve slopes downward ...
... – When all firms behave this way together a rise in wage rate will decrease quantity of labor demanded – This is why economy’s labor demand curve slopes downward ...
Aggregate Demand II: Applying the IS-LM Model
... – use it to buy foreign currency, – thereby making the domestic currency cheaper relative to the foreign currency, – thereby stimulating exports, – thereby ending the recession! ...
... – use it to buy foreign currency, – thereby making the domestic currency cheaper relative to the foreign currency, – thereby stimulating exports, – thereby ending the recession! ...
1 .A production possibilities frontier can shift outward if a
... a). falls. The Fed could lessen the impact of this by buying Treasury bonds. b). falls. The Fed could lessen the impact of this by selling Treasury bonds. c). rises. The Fed could lessen the impact of this by buying Treasury bonds. d). rises. The Fed could lessen the impact of this by selling Treasu ...
... a). falls. The Fed could lessen the impact of this by buying Treasury bonds. b). falls. The Fed could lessen the impact of this by selling Treasury bonds. c). rises. The Fed could lessen the impact of this by buying Treasury bonds. d). rises. The Fed could lessen the impact of this by selling Treasu ...
Chapter 14
... Poor’s (S&P) Rating Service, has placed British bonds into what it calls the “negative” category among highest-rated bonds • The negative rating had an immediate effect on the interest rate that the British government was required to offer to induce individuals and companies to continue buying its b ...
... Poor’s (S&P) Rating Service, has placed British bonds into what it calls the “negative” category among highest-rated bonds • The negative rating had an immediate effect on the interest rate that the British government was required to offer to induce individuals and companies to continue buying its b ...
The Influence of Monetary and Fiscal Policy on Aggregate Demand
... The Crowding-Out Effect u Fiscal policy may not affect the economy as strongly as predicted by the multiplier. u An increase in government purchases causes the interest rate to rise. u A higher interest rate reduces investment spending. u This reduction in demand that results when a fiscal expansio ...
... The Crowding-Out Effect u Fiscal policy may not affect the economy as strongly as predicted by the multiplier. u An increase in government purchases causes the interest rate to rise. u A higher interest rate reduces investment spending. u This reduction in demand that results when a fiscal expansio ...
The Investment Environment in Africa “Cutting Red Tape for
... African countries by increasing the business opportunities for local businesses to participate in the pro-poor growth of the economy – as a natural part of successful commercial operations. The brief from the private sector – creating a network & platform: • Develop flexible & innovative approaches ...
... African countries by increasing the business opportunities for local businesses to participate in the pro-poor growth of the economy – as a natural part of successful commercial operations. The brief from the private sector – creating a network & platform: • Develop flexible & innovative approaches ...
Government and public sector debt measures
... sector less its holdings of liquid financial assets, such as bank deposits. The financial liabilities usually have an explicit monetary value but are measured using their nominal values i.e., not at market prices. The majority of debt financing is through central government issues of government secu ...
... sector less its holdings of liquid financial assets, such as bank deposits. The financial liabilities usually have an explicit monetary value but are measured using their nominal values i.e., not at market prices. The majority of debt financing is through central government issues of government secu ...
PAGE ONE Economics - Federal Reserve Bank of St. Louis
... Bank reserves: The sum of cash that banks hold in their vaults and the deposits they maintain with Federal Reserve Banks. Elastic currency: Currency whose supply can be increased or decreased to meet the demands of the economy and used by a central bank to provide financial stability and achieve eco ...
... Bank reserves: The sum of cash that banks hold in their vaults and the deposits they maintain with Federal Reserve Banks. Elastic currency: Currency whose supply can be increased or decreased to meet the demands of the economy and used by a central bank to provide financial stability and achieve eco ...
Some forerunners
... RE states that it does not matter whether a government finances its spending with debt or taxes, the effect on total level of demand in an economy being the same. Extra government spending through deficits will suggest to taxpayers higher taxes in the future and they would put aside savings accordin ...
... RE states that it does not matter whether a government finances its spending with debt or taxes, the effect on total level of demand in an economy being the same. Extra government spending through deficits will suggest to taxpayers higher taxes in the future and they would put aside savings accordin ...
Assignment 5 - Queen`s Economics Department
... 49. What is the correct order of events following an expansionary fiscal policy with a fixed exchange rate? A) Interest rates rise, overall balance-of-payments may improve, money supply falls to defend fixed exchange rate B) Production and income rise, money supply falls to defend fixed exchange rat ...
... 49. What is the correct order of events following an expansionary fiscal policy with a fixed exchange rate? A) Interest rates rise, overall balance-of-payments may improve, money supply falls to defend fixed exchange rate B) Production and income rise, money supply falls to defend fixed exchange rat ...
Country: Thailand
... now, the BOT has amended regulations to allow the increased share of ownership that a foreign entity could have in a domestic bank. Thus, this factor has attracted both individuals and institutions to invest in Thai banks. As mentioned in the topic of shareholder structures of Thai banks, many forei ...
... now, the BOT has amended regulations to allow the increased share of ownership that a foreign entity could have in a domestic bank. Thus, this factor has attracted both individuals and institutions to invest in Thai banks. As mentioned in the topic of shareholder structures of Thai banks, many forei ...
Monetary Policy
... According to the Bank, lower inflation means that lenders will accept a lower inflation premium not just on nominal interest rates but real interest rates as well, since low inflation enhances stability in financial markets. Therefore the main way the Bank believes it can reduce long-term real inter ...
... According to the Bank, lower inflation means that lenders will accept a lower inflation premium not just on nominal interest rates but real interest rates as well, since low inflation enhances stability in financial markets. Therefore the main way the Bank believes it can reduce long-term real inter ...
12-2 (Key Question) Assume that a hypothetical economy with
... a. Expansionary fiscal policy during a depression will have a greater positive effect on real GDP if government borrows the money to finance the budget deficit than if it creates new money to finance the deficit. b. Contractionary fiscal policy during severe demand-pull inflation will be more effect ...
... a. Expansionary fiscal policy during a depression will have a greater positive effect on real GDP if government borrows the money to finance the budget deficit than if it creates new money to finance the deficit. b. Contractionary fiscal policy during severe demand-pull inflation will be more effect ...
ECON 100 Tutorial: Week 21
... the fact that inflation and recession can coexist. Keynes’ multiplier relates to the idea that an increase in exogenous (government) investment will increase incomes and saving, which will be reinvested. During a recession this can guide fiscal policy. A problem with the Keynesian idea of a multipli ...
... the fact that inflation and recession can coexist. Keynes’ multiplier relates to the idea that an increase in exogenous (government) investment will increase incomes and saving, which will be reinvested. During a recession this can guide fiscal policy. A problem with the Keynesian idea of a multipli ...
Reading Ch 1 Money Growth (M2 Annual Rate) and the Business
... The 2Q08-2Q09 Trap. During the Downturn. From 2Q08 to 2Q09 the base went up 97.25%, a record shattering rate of growth from the FRED chart which goes back to 1918. But M2 went up only 9.23%. The reason was that 90.51% of the base was trapped letting only 9.49% through. If a trap is perfect then the ...
... The 2Q08-2Q09 Trap. During the Downturn. From 2Q08 to 2Q09 the base went up 97.25%, a record shattering rate of growth from the FRED chart which goes back to 1918. But M2 went up only 9.23%. The reason was that 90.51% of the base was trapped letting only 9.49% through. If a trap is perfect then the ...
Government Spending in a Growing Economy
... uncertain world, there is no inherent reason why planned investment spending should match available savings and the mismatch is reflected in the demand for bank credit. Hence, the money supply is not under the total control of the central bank. If banks' profit expectations are the same as those of ...
... uncertain world, there is no inherent reason why planned investment spending should match available savings and the mismatch is reflected in the demand for bank credit. Hence, the money supply is not under the total control of the central bank. If banks' profit expectations are the same as those of ...
Is Fiscal Profligacy the Cause of the Crisis? Prabhat Patnaik
... has been so ruthlessly practiced in India that tariff rates on imported goods are invariably kept far below even the “tariff bounds” that are allowed to the country by the WTO rules themselves. The result has been both a widening of the current account deficit and a crisis of manufacturing. It is no ...
... has been so ruthlessly practiced in India that tariff rates on imported goods are invariably kept far below even the “tariff bounds” that are allowed to the country by the WTO rules themselves. The result has been both a widening of the current account deficit and a crisis of manufacturing. It is no ...
Lecture 15: Money - Development of e
... pots for cooking. As the number of goods to be exchanged increased, barter posed many difficulties. So precious metals like gold and silver were used as money. Then the paper currencies were used as legal money, i.e., an instrument of exchange, by the governments. j) Definition of Money Money is def ...
... pots for cooking. As the number of goods to be exchanged increased, barter posed many difficulties. So precious metals like gold and silver were used as money. Then the paper currencies were used as legal money, i.e., an instrument of exchange, by the governments. j) Definition of Money Money is def ...
Baldwin & Wyplosz The Economics of Euroepan Integration
... • A menu hard to pick from: trade-offs are everywhere • All of this takes the view from a single country • Systems involve many countries and rest on agreed upon rules, including mutual support • Since the end of Bretton Woods, there is no world monetary system • This leaves room for regional moneta ...
... • A menu hard to pick from: trade-offs are everywhere • All of this takes the view from a single country • Systems involve many countries and rest on agreed upon rules, including mutual support • Since the end of Bretton Woods, there is no world monetary system • This leaves room for regional moneta ...
ECO-DEV Quiz - Euclid University
... Every nation’s currency was defined as a unit of weight of gold, and therefore the paper currency was redeemable by any government or central bank, around the world, in the defined weight of gold coin. Every nation’s currency was defined as a unit of weight of gold or any other precious metal, a ...
... Every nation’s currency was defined as a unit of weight of gold, and therefore the paper currency was redeemable by any government or central bank, around the world, in the defined weight of gold coin. Every nation’s currency was defined as a unit of weight of gold or any other precious metal, a ...