File
... • https://www.youtube.com/watch?v=1dq7mMort9o 1. What are the two most important jobs of the central bank? 2. What happens when interest rates are low? 3. What happens when interest rates are high? 4. What happens if the Fed increases the money supply? 5. What does the central bank do it they want t ...
... • https://www.youtube.com/watch?v=1dq7mMort9o 1. What are the two most important jobs of the central bank? 2. What happens when interest rates are low? 3. What happens when interest rates are high? 4. What happens if the Fed increases the money supply? 5. What does the central bank do it they want t ...
Fiscal and Monetary Policy Process
... issues through the use of two policies: fiscal policy and monetary policy. Fiscal policy is the use of government spending and taxes to stabilize the economy. Keynes recommends that,during periods of recession, Congress should increase government spending in order to “prime the pump” of the economy. ...
... issues through the use of two policies: fiscal policy and monetary policy. Fiscal policy is the use of government spending and taxes to stabilize the economy. Keynes recommends that,during periods of recession, Congress should increase government spending in order to “prime the pump” of the economy. ...
The Great Depression and the New Deal, 1929
... trade and decreased international demand by 70% Weaknesses in the Stock Market Inflated stock prices reflected demand and confidence, not actual business value Speculation – “risky business” Buying on margin – works as long as prices go up No laws/regulations ...
... trade and decreased international demand by 70% Weaknesses in the Stock Market Inflated stock prices reflected demand and confidence, not actual business value Speculation – “risky business” Buying on margin – works as long as prices go up No laws/regulations ...
Document
... "The Principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale. – Thomas Jefferson From America’s founding until WWI, total government commandeered 5-10% of the economy. This means that 90-95% of human economic action was voluntar ...
... "The Principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale. – Thomas Jefferson From America’s founding until WWI, total government commandeered 5-10% of the economy. This means that 90-95% of human economic action was voluntar ...
War of Ideas - Rio Hondo College
... economy is inherently unstable. He argued that expectation (psychology) of consumers and business is determined by the short run market performance. Although he believed in the long run performance of the market system, he argued that we are all dead in the long run! (remember he was trying to s ...
... economy is inherently unstable. He argued that expectation (psychology) of consumers and business is determined by the short run market performance. Although he believed in the long run performance of the market system, he argued that we are all dead in the long run! (remember he was trying to s ...
Demand for Loans Real Interest Rate
... structural unemployment in the long-run. D) Changes in the composition of the overall demand for labor tend to be deflationary in the long-run. E) The natural rate of unemployment is independent of monetary and fiscal policy changes that affect aggregate demand. ...
... structural unemployment in the long-run. D) Changes in the composition of the overall demand for labor tend to be deflationary in the long-run. E) The natural rate of unemployment is independent of monetary and fiscal policy changes that affect aggregate demand. ...
Benefits of Multinationals
... New investment will increase output of goods & services Any extra output sold abroad, thus increasing exports, also imports could be reduced Taxes paid increases government funds enabling them to improve their services An efficient multinational might make high-quality products available at lower pr ...
... New investment will increase output of goods & services Any extra output sold abroad, thus increasing exports, also imports could be reduced Taxes paid increases government funds enabling them to improve their services An efficient multinational might make high-quality products available at lower pr ...
Press summary (PDF, 170 KB)
... emerging economies. In an extreme case scenario, massive capital outflows could create turbulence in their financial markets or even currency crises. The German economy is experiencing a modest upturn. In the first half of the year gross domestic product grew at rates that roughly correspond to t ...
... emerging economies. In an extreme case scenario, massive capital outflows could create turbulence in their financial markets or even currency crises. The German economy is experiencing a modest upturn. In the first half of the year gross domestic product grew at rates that roughly correspond to t ...
Name:
... injection of investment spending in a private closed economy. At equilibrium GDP there will be no changes in unplanned inventories because expenditures will exactly equal planned output levels which include consumer goods and services and planned investment. Thus there is no unplanned investment inc ...
... injection of investment spending in a private closed economy. At equilibrium GDP there will be no changes in unplanned inventories because expenditures will exactly equal planned output levels which include consumer goods and services and planned investment. Thus there is no unplanned investment inc ...
International Economic Environment
... growth. While the primary and secondary industries expanded at a slower pace, this was more than offset by higher growth in the services industry (8.2%, 3Q 2016: 7.5%), in particular, in consumer services such as media, education, scientific research, and social services. In the ASEAN economies, gro ...
... growth. While the primary and secondary industries expanded at a slower pace, this was more than offset by higher growth in the services industry (8.2%, 3Q 2016: 7.5%), in particular, in consumer services such as media, education, scientific research, and social services. In the ASEAN economies, gro ...
Chapter 9 - Foothill College
... influences people’s savings. Money they do not spend (savings) becomes part of the supply in the market for loanable funds. The quantity (horizontal axis) is dollars lent out; the price of loanable funds is the interest rate. Business investment spending (I) is also dependent on the interest rate, w ...
... influences people’s savings. Money they do not spend (savings) becomes part of the supply in the market for loanable funds. The quantity (horizontal axis) is dollars lent out; the price of loanable funds is the interest rate. Business investment spending (I) is also dependent on the interest rate, w ...
Causes of the Great Depression & Hoover`s Response
... • Concern over growing deficits Congress passes and Hoover signs the Revenue Act of 1932 • The act reversed Mellon’s tax cuts. – Raising business taxes from 12% to 13.75% – Raised taxes on every bracket – Lower income brackets increases form 1% to 4% – Raised taxes on the wealthy from 24% to 64% • T ...
... • Concern over growing deficits Congress passes and Hoover signs the Revenue Act of 1932 • The act reversed Mellon’s tax cuts. – Raising business taxes from 12% to 13.75% – Raised taxes on every bracket – Lower income brackets increases form 1% to 4% – Raised taxes on the wealthy from 24% to 64% • T ...
The Macroeconomic Environment
... No, these policies are “doomed to failure.” Remember, inflation is a monetary phenomenon, and caused by shifts in the AD. So, what are these policies? • Wage & price controls • Tax-based Incomes policies (TIPs) • Supply-side incentives to boost output. • Remove barriers that keep wages/prices from f ...
... No, these policies are “doomed to failure.” Remember, inflation is a monetary phenomenon, and caused by shifts in the AD. So, what are these policies? • Wage & price controls • Tax-based Incomes policies (TIPs) • Supply-side incentives to boost output. • Remove barriers that keep wages/prices from f ...
liquidity trap - Princeton University Press
... the central bank, a one-unit change in the monetary base leads to more than one-unit change in money supply—the ratio between the two is referred as the money multiplier and is usually greater than one. The reason for this relationship is that banks do not have any incentives to hold reserves, which ...
... the central bank, a one-unit change in the monetary base leads to more than one-unit change in money supply—the ratio between the two is referred as the money multiplier and is usually greater than one. The reason for this relationship is that banks do not have any incentives to hold reserves, which ...
causes of great depression powerpoint
... • Concern over growing deficits Congress passes and Hoover signs the Revenue Act of 1932 • The act reversed Mellon’s tax cuts. – Raising business taxes from 12% to 13.75% – Raised taxes on every bracket – Lower income brackets increases form 1% to 4% – Raised taxes on the wealthy from 24% to 64% • T ...
... • Concern over growing deficits Congress passes and Hoover signs the Revenue Act of 1932 • The act reversed Mellon’s tax cuts. – Raising business taxes from 12% to 13.75% – Raised taxes on every bracket – Lower income brackets increases form 1% to 4% – Raised taxes on the wealthy from 24% to 64% • T ...
Classwork packet
... In spite of the claims of critics such as Huey Long and Father Coughlin, the majority of Americans were still behind President Roosevelt. The overwhelming victory of the Democratic Party in the 1934 congressional elections was a clear sign of approval for the New Deal and FDR. With an even greater ...
... In spite of the claims of critics such as Huey Long and Father Coughlin, the majority of Americans were still behind President Roosevelt. The overwhelming victory of the Democratic Party in the 1934 congressional elections was a clear sign of approval for the New Deal and FDR. With an even greater ...
Weekly Market Commentary November 25, 2013
... Okay. Okay. If you've been trekking through Siberia or Patagonia for about a year, then maybe it surprised you to hear the minutes from the Federal Reserve Open Market Committee meeting showed it expects to begin tapering Quantitative Easing (QE) in the coming months. However, since the Fed has been ...
... Okay. Okay. If you've been trekking through Siberia or Patagonia for about a year, then maybe it surprised you to hear the minutes from the Federal Reserve Open Market Committee meeting showed it expects to begin tapering Quantitative Easing (QE) in the coming months. However, since the Fed has been ...
What is a typical business cycle?
... productivity has changed, and it finds no great effect on productivity . Another possible explanation could be that the recent increase in employment has meant that new groups with a lower productivity than others have entered the labour market. For instance, it can take time to train new employees. ...
... productivity has changed, and it finds no great effect on productivity . Another possible explanation could be that the recent increase in employment has meant that new groups with a lower productivity than others have entered the labour market. For instance, it can take time to train new employees. ...
FRBSF E L CONOMIC ETTER
... and how risk-averse they are about the waiting time for a sale. In this analysis, I am actually understating the risks faced by the seller, because I ignore the possibility that prices could fall during the wait. If households use a discount factor of 10% per annum to discount cash flows and do not ...
... and how risk-averse they are about the waiting time for a sale. In this analysis, I am actually understating the risks faced by the seller, because I ignore the possibility that prices could fall during the wait. If households use a discount factor of 10% per annum to discount cash flows and do not ...
A rise in the price of oil imports has resulted in a decrease of short
... a. The rush to get to the bank before closing time on Friday. b. When the bank falls below the required reserve ratio. c. When the bank has more checking accounts than savings accounts. d. Many people trying to get their money out of the bank at once because they fear it will fail. 19. What is F.D.I ...
... a. The rush to get to the bank before closing time on Friday. b. When the bank falls below the required reserve ratio. c. When the bank has more checking accounts than savings accounts. d. Many people trying to get their money out of the bank at once because they fear it will fail. 19. What is F.D.I ...
Chapter 20 Economic Growth and Rising Living Standards
... 10. LDCs might attempt to improve their growth performance in four ways: (1) moving along the PPF by producing fewer consumer goods and more capital goods; (2) reducing the consumption of the rich in order to free up resources for capital formation; (3) foreign assistance; and (4) limits on populati ...
... 10. LDCs might attempt to improve their growth performance in four ways: (1) moving along the PPF by producing fewer consumer goods and more capital goods; (2) reducing the consumption of the rich in order to free up resources for capital formation; (3) foreign assistance; and (4) limits on populati ...
Chapter 8 Economic Growth and Rising Living Standards
... 10. LDCs might attempt to improve their growth performance in four ways: (1) moving along the PPF by producing fewer consumer goods and more capital goods; (2) reducing the consumption of the rich in order to free up resources for capital formation; (3) foreign assistance; and (4) limits on populati ...
... 10. LDCs might attempt to improve their growth performance in four ways: (1) moving along the PPF by producing fewer consumer goods and more capital goods; (2) reducing the consumption of the rich in order to free up resources for capital formation; (3) foreign assistance; and (4) limits on populati ...
Reference sheet - Mrs. Ennis AP ECONOMICS
... CLASSICAL MODEL: 1770s and Adam Smith’s “Invisible Hand” (Wealth of Nations, 1776) ...
... CLASSICAL MODEL: 1770s and Adam Smith’s “Invisible Hand” (Wealth of Nations, 1776) ...
Chile_en.pdf
... 2009 (US$ 11.095 billion). Nevertheless, the reserves accumulated in previous high-surplus years enabled the government to maintain a net creditor position that reached 3% of GDP in 2009, despite making withdrawals of US$ 9.277 billion (equivalent to 46%) from the Economic and Social Stabilization F ...
... 2009 (US$ 11.095 billion). Nevertheless, the reserves accumulated in previous high-surplus years enabled the government to maintain a net creditor position that reached 3% of GDP in 2009, despite making withdrawals of US$ 9.277 billion (equivalent to 46%) from the Economic and Social Stabilization F ...
Inverted Real Yields vs. Gold
... Tuesday, December 06, 2016 The gold market is notoriously difficult to predict because so many metrics play into the price of the metal. There are obvious factors like supply and demand for physical gold. However, the speculative forces that move gold prices are more important: the Dollar, bond yiel ...
... Tuesday, December 06, 2016 The gold market is notoriously difficult to predict because so many metrics play into the price of the metal. There are obvious factors like supply and demand for physical gold. However, the speculative forces that move gold prices are more important: the Dollar, bond yiel ...
Long Depression
The Long Depression was a worldwide price recession, beginning in 1873 and running through the spring of 1879. It was the most severe in Europe and the United States, which had been experiencing strong economic growth fueled by the Second Industrial Revolution in the decade following the American Civil War. The episode was labeled the ""Great Depression"" at the time, and it held that designation until the Great Depression of the 1930s. Though a period of general deflation and a general contraction, it did not have the severe economic retrogression of the Great Depression.It was most notable in Western Europe and North America, at least in part because reliable data from the period are most readily available in those parts of the world. The United Kingdom is often considered to have been the hardest hit; during this period it lost some of its large industrial lead over the economies of Continental Europe. While it was occurring, the view was prominent that the economy of the United Kingdom had been in continuous depression from 1873 to as late as 1896 and some texts refer to the period as the Great Depression of 1873–96.In the United States, economists typically refer to the Long Depression as the Depression of 1873–79, kicked off by the Panic of 1873, and followed by the Panic of 1893, book-ending the entire period of the wider Long Depression. The National Bureau of Economic Research dates the contraction following the panic as lasting from October 1873 to March 1879. At 65 months, it is the longest-lasting contraction identified by the NBER, eclipsing the Great Depression's 43 months of contraction.In the US, from 1873–1879, 18,000 businesses went bankrupt, including 89 railroads. Ten states and hundreds of banks went bankrupt. Unemployment peaked in 1878, long after the panic ended. Different sources peg the peak unemployment rate anywhere from 8.25% to 14%.