Fiscal consolidation during a depression
... led to a sharp rise in global government debt, giving rise to concerns about long-term fiscal sustainability. Despite this, long-term interest rates remain low in virtually all major developed economies outside the Euro Area, reflecting the fact that growth is weak and short-term interest rates are ...
... led to a sharp rise in global government debt, giving rise to concerns about long-term fiscal sustainability. Despite this, long-term interest rates remain low in virtually all major developed economies outside the Euro Area, reflecting the fact that growth is weak and short-term interest rates are ...
Post-Keynesian models of growth and distribution
... • What happens if there is a reduction in the markup (or in the profit share) and hence an increase in the real wage (or an increase in the wage share)? • Initially, in the short run, as explained by Robinson (1956), there will be an increase in consumption, and hence an increase in the rate of util ...
... • What happens if there is a reduction in the markup (or in the profit share) and hence an increase in the real wage (or an increase in the wage share)? • Initially, in the short run, as explained by Robinson (1956), there will be an increase in consumption, and hence an increase in the rate of util ...
Y i - IES
... hence higher interest lower demand for money (and higher demand for bonds) – Keynes: uncertainty and risk - if interest expected to increase, than price of bond very low and people prefer to hold money (why to hold bonds when their price will fall?) ...
... hence higher interest lower demand for money (and higher demand for bonds) – Keynes: uncertainty and risk - if interest expected to increase, than price of bond very low and people prefer to hold money (why to hold bonds when their price will fall?) ...
Chapter 1: Introduction
... If we plot on a diagram--with the nominal interest rate i=r+π on the vertical axis and the level of total income Yon the horizontal axis--the equilibrium level of nominal interest rates for each potential level of Y, we have plotted the LM curve. The LM curve is drawn for a given, fixed, particular ...
... If we plot on a diagram--with the nominal interest rate i=r+π on the vertical axis and the level of total income Yon the horizontal axis--the equilibrium level of nominal interest rates for each potential level of Y, we have plotted the LM curve. The LM curve is drawn for a given, fixed, particular ...
Group Schemes Savings Portfolio
... low or if there is a market crash? Market / fund value adjustments After periods of poor investment returns, the amount that policyholders receive when withdrawing from the fund prior to their maturity date may need to be adjusted downward. This “market value adjustment” is necessary to protect futu ...
... low or if there is a market crash? Market / fund value adjustments After periods of poor investment returns, the amount that policyholders receive when withdrawing from the fund prior to their maturity date may need to be adjusted downward. This “market value adjustment” is necessary to protect futu ...
Fundamental Analysis Module
... •Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. •Shows the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year. ...
... •Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. •Shows the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year. ...
The Nation in Depression
... bankruptcies of the early 1920s and President Hoover's oratory. Other factors often cited as explanations for increased rigidity after World War I are the rise of internal labor markets, which replaced day-to-day wage agreements with set pay scales, and the increasing size and market power of Americ ...
... bankruptcies of the early 1920s and President Hoover's oratory. Other factors often cited as explanations for increased rigidity after World War I are the rise of internal labor markets, which replaced day-to-day wage agreements with set pay scales, and the increasing size and market power of Americ ...
Teaching Intermediate Macroeconomics using the 3-Equation
... that its desired output level in period one is y1 . In other words, y1 is the central bank’s aggregate demand target for period 1 as implied by the monetary rule. The M R-AD line joins point B and the zero loss point at Z where inflation is at target and output is at equilibrium. The fourth step is ...
... that its desired output level in period one is y1 . In other words, y1 is the central bank’s aggregate demand target for period 1 as implied by the monetary rule. The M R-AD line joins point B and the zero loss point at Z where inflation is at target and output is at equilibrium. The fourth step is ...
Chapter 12: Inflation
... real wage rate and employers gain at the expense of workers. Lower than anticipated inflation raises the real wage rate and workers gain at the expense of employers. 3. Departure from full employment: Higher than anticipated inflation lowers the real wage rate, increases the quantity of labor demand ...
... real wage rate and employers gain at the expense of workers. Lower than anticipated inflation raises the real wage rate and workers gain at the expense of employers. 3. Departure from full employment: Higher than anticipated inflation lowers the real wage rate, increases the quantity of labor demand ...
Essentials of Managerial Finance
... – The issuer’s cost of financing is measured by the yield to maturity • The annualized yield that is paid by the issuer over the life of the bond • Equates the future coupon and principal payments to the initial proceeds received • Does not include transaction costs associated with issuing the bond ...
... – The issuer’s cost of financing is measured by the yield to maturity • The annualized yield that is paid by the issuer over the life of the bond • Equates the future coupon and principal payments to the initial proceeds received • Does not include transaction costs associated with issuing the bond ...
Lecture 12
... Consider the vertical portion of the AS curve. At some level the overall economy is using all its capital and all the labor that wants to work at the market wage. At this level (Ȳ), increased demand for labor and output can be met only by increased prices. Neither wages nor prices are likely to be s ...
... Consider the vertical portion of the AS curve. At some level the overall economy is using all its capital and all the labor that wants to work at the market wage. At this level (Ȳ), increased demand for labor and output can be met only by increased prices. Neither wages nor prices are likely to be s ...
Chapter: Practice Exam for Macro Indicators Instruction:
... If the nominal interest rate is less than the rate of inflation, the real interest rate will be less than zero. does not change. will equal zero. will be greater than zero. this can never happen. ...
... If the nominal interest rate is less than the rate of inflation, the real interest rate will be less than zero. does not change. will equal zero. will be greater than zero. this can never happen. ...
Problems for Macroeconomics, 2/e
... A fall in G leads to a fall in output (which tends to reduce investment) and to a fall in the interest rate (which tends to increase investment). Thus, for investment to increase, the output effect (b1) must be smaller than the interest rate effect (b2 d1/d2). Note that the interest rate effect cont ...
... A fall in G leads to a fall in output (which tends to reduce investment) and to a fall in the interest rate (which tends to increase investment). Thus, for investment to increase, the output effect (b1) must be smaller than the interest rate effect (b2 d1/d2). Note that the interest rate effect cont ...
Capital Budgeting Processes And Techniques
... EAC converts lifetime costs to a level annuity; eliminates the problem of unequal lives 1. Compute NPV for operating devices A and B for their lifetime NPV device A = $15,936 NPV device B = $18,065 2. Compute annual expenditure to make NPV of annuity equal to NPV of operating device ...
... EAC converts lifetime costs to a level annuity; eliminates the problem of unequal lives 1. Compute NPV for operating devices A and B for their lifetime NPV device A = $15,936 NPV device B = $18,065 2. Compute annual expenditure to make NPV of annuity equal to NPV of operating device ...
Homework 5 answers - Nathaniel Higgins
... and pet−2 increase by the exact same amount that pet increases. (ii) How does your answer in part (i) help you to interpret θ0 in the above equation as the LRP? In order for θ0 to be the effect of pet , holding all other regressors constant, it must be the case that pet−1 and pet−2 are also increasi ...
... and pet−2 increase by the exact same amount that pet increases. (ii) How does your answer in part (i) help you to interpret θ0 in the above equation as the LRP? In order for θ0 to be the effect of pet , holding all other regressors constant, it must be the case that pet−1 and pet−2 are also increasi ...
Interest rate
An interest rate is the rate at which interest is paid by borrowers (debtors) for the use of money that they borrow from lenders (creditors). Specifically, the interest rate is a percentage of principal paid a certain number of times per period for all periods during the total term of the loan or credit. Interest rates are normally expressed as a percentage of the principal for a period of one year, sometimes they are expressed for different periods such as a month or a day. Different interest rates exist parallelly for the same or comparable time periods, depending on the default probability of the borrower, the residual term, the payback currency, and many more determinants of a loan or credit. For example, a company borrows capital from a bank to buy new assets for its business, and in return the lender receives rights on the new assets as collateral and interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower.Interest-rate targets are a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment. The central banks of countries generally tend to reduce interest rates when they wish to increase investment and consumption in the country's economy. However, a low interest rate as a macro-economic policy can be risky and may lead to the creation of an economic bubble, in which large amounts of investments are poured into the real-estate market and stock market. In developed economies, interest-rate adjustments are thus made to keep inflation within a target range for the health of economic activities or cap the interest rate concurrently with economic growth to safeguard economic momentum.