The Final Exam is Tuesday May 4th at 1:00 in the normal Todd
... the US current and capital accounts. What is the world savings glut and how does this affect the US balance of payments? Chapter 12: Understand the factors affecting exchange rates in the short run and in the long run. For the long run, be able to explain the law of one price (and the Big Mac Index ...
... the US current and capital accounts. What is the world savings glut and how does this affect the US balance of payments? Chapter 12: Understand the factors affecting exchange rates in the short run and in the long run. For the long run, be able to explain the law of one price (and the Big Mac Index ...
Monetary Policy PowerPoint
... • To expand money supply Fed buys government securities. Money makes it way into individual and business accounts increasing cash reserves and loan pools. This increases aggregate demand which leads to an increase in production Discount Rate—interest rate that the Fed charges member banks for the us ...
... • To expand money supply Fed buys government securities. Money makes it way into individual and business accounts increasing cash reserves and loan pools. This increases aggregate demand which leads to an increase in production Discount Rate—interest rate that the Fed charges member banks for the us ...
This PDF is a selection from a published volume from
... able to coordinate leisure time. As friends and relatives take more leisure, individual Europeans in turn find themselves desiring to do more of the same. It will be interesting to see if similar explanations can explain differentials between the East and West Coasts of the United States. Also, what ...
... able to coordinate leisure time. As friends and relatives take more leisure, individual Europeans in turn find themselves desiring to do more of the same. It will be interesting to see if similar explanations can explain differentials between the East and West Coasts of the United States. Also, what ...
Short Duration Income Y Share Fund Fact Sheet
... sensitive the fund is to shifts in interest rates. Standard deviation measures how widely a set of values varies from the mean. It is a historical measure of the variability of return earned by an investment portfolio over a 3-year period. Consider these risks before investing: Putnam Short Duration ...
... sensitive the fund is to shifts in interest rates. Standard deviation measures how widely a set of values varies from the mean. It is a historical measure of the variability of return earned by an investment portfolio over a 3-year period. Consider these risks before investing: Putnam Short Duration ...
Homework Assignment #6
... b. Let the productivity increase of the machine be r = 0.08. By using this machine, he would produce 1000/pt*(1+r) amount of corns. The two methods would produce the same amount of corns: 1,000 (1 + i) / (pt(1+π)) =1000/pt*(1+r) Î (1+ i ) = (1 + π) * (1+r) Î i= π+r+πr If π and r are small, then i ≈ ...
... b. Let the productivity increase of the machine be r = 0.08. By using this machine, he would produce 1000/pt*(1+r) amount of corns. The two methods would produce the same amount of corns: 1,000 (1 + i) / (pt(1+π)) =1000/pt*(1+r) Î (1+ i ) = (1 + π) * (1+r) Î i= π+r+πr If π and r are small, then i ≈ ...
1 Miami Dade College ECO 2013 Principles of Macroeconomics
... 37. Quantitative easing refers to the process whereby the Fed: A) decreases the money supply to fight inflation. B) raises interest rates to fight inflation. C) buys securities to stimulate the economy. D) sells securities to stimulate the economy 38. The Fed will keep the inflation rate constant, ...
... 37. Quantitative easing refers to the process whereby the Fed: A) decreases the money supply to fight inflation. B) raises interest rates to fight inflation. C) buys securities to stimulate the economy. D) sells securities to stimulate the economy 38. The Fed will keep the inflation rate constant, ...
International Economic Integration
... Offshore activities and foreign shopping Financial capital ...
... Offshore activities and foreign shopping Financial capital ...
Keynesian_model.pdf
... 9. In principle this is equal to I but note that it counts all inventories as if they were intended. 10. The government does this because it cannot go inside the minds of the owner/managers and ask if the inventories are desired or not. They have to take the fact that inventories exist at their leve ...
... 9. In principle this is equal to I but note that it counts all inventories as if they were intended. 10. The government does this because it cannot go inside the minds of the owner/managers and ask if the inventories are desired or not. They have to take the fact that inventories exist at their leve ...
Intermediate Macroeconomics: Great Recession
... in March, the failing of Lehman Brothers in September 2008, the rescue of AIG, etc. Concerns arose that there was effectively a bank run – not a bank run in the traditional sense as had characterized the Great Depression, but a run on psuedo-banks that were outside of conventional regularity structu ...
... in March, the failing of Lehman Brothers in September 2008, the rescue of AIG, etc. Concerns arose that there was effectively a bank run – not a bank run in the traditional sense as had characterized the Great Depression, but a run on psuedo-banks that were outside of conventional regularity structu ...
Document
... The Fed controls intermediate target variables only indirectly mainly because (a) they are also subject to influence by other parts of the federal government. (b) private-sector decisions also influence these variables. (c) of information lags. (d) of impact lags. ...
... The Fed controls intermediate target variables only indirectly mainly because (a) they are also subject to influence by other parts of the federal government. (b) private-sector decisions also influence these variables. (c) of information lags. (d) of impact lags. ...
slow recovery - Stanford University
... described by Wallison (2011). The decision of the Securities and Exchange Commission in April 2004 to relax the capital ratio rules for the very large broker-investment banks, including Bear Sterns and Lehman, likely raised overall risks by allowing those institutions to do their own risk weighting, ...
... described by Wallison (2011). The decision of the Securities and Exchange Commission in April 2004 to relax the capital ratio rules for the very large broker-investment banks, including Bear Sterns and Lehman, likely raised overall risks by allowing those institutions to do their own risk weighting, ...
US GDP Review -- Consumer, Where Art Thou?
... the -3.9% year-on-year trend. In other words, while nobody is willing to go out on the limb and this a depression (the same academics that brought you "The Great Moderation" during that last great albeit leveraged economic expansion are now labeling what we have endured over the past year-anda-half ...
... the -3.9% year-on-year trend. In other words, while nobody is willing to go out on the limb and this a depression (the same academics that brought you "The Great Moderation" during that last great albeit leveraged economic expansion are now labeling what we have endured over the past year-anda-half ...
Homework 4, Due in class Wednesday August 28 at 12:10 - uc
... in government purchases does not have the full multiplier effect on output here? e) Assume that G is back at its original level of 1000, but (M/P)s increases by 200. By how much will Y increase in the short-run equilibrium? Illustrate this with a graph of the IS-LM curves. What is happening to inves ...
... in government purchases does not have the full multiplier effect on output here? e) Assume that G is back at its original level of 1000, but (M/P)s increases by 200. By how much will Y increase in the short-run equilibrium? Illustrate this with a graph of the IS-LM curves. What is happening to inves ...
The Zero Bound on Nominal Interest Rates
... created by the zero bound on nominal interest rates has been used as an argument against targeting a very low level of inflation, typically below 1 or 2 per cent. The second set of factors that are important for determining the probability of hitting the zero bound are those that affect the variabil ...
... created by the zero bound on nominal interest rates has been used as an argument against targeting a very low level of inflation, typically below 1 or 2 per cent. The second set of factors that are important for determining the probability of hitting the zero bound are those that affect the variabil ...
Chapter 16
... b) These lags may be longer than policymakers can forecast so that actions taken in response to actual or forecasted events may have their maximum effects only when the economy faces new problems. ...
... b) These lags may be longer than policymakers can forecast so that actions taken in response to actual or forecasted events may have their maximum effects only when the economy faces new problems. ...
Price Indexes and the Inflation Rate
... unstable and unpredictable. In order to study long-term trends in inflation rate, economists calculate the core inflation rate. Core inflation rate - The rate of inflation excluding the effects of food and energy prices. Hyperinflation - Inflation that is out of ...
... unstable and unpredictable. In order to study long-term trends in inflation rate, economists calculate the core inflation rate. Core inflation rate - The rate of inflation excluding the effects of food and energy prices. Hyperinflation - Inflation that is out of ...
Discussion of The Design of Monetary and Fiscal Policy: A Global Perspective
... investment depends on current marginal product of capital ...
... investment depends on current marginal product of capital ...
Discussion section 3
... (2) Exchange rate peg and central bank balance sheet When there is excess supply of domestic currency: central bank buys domestic currency in exchange for foreign currency, losing foreign reserves and reducing money supply – a simultaneous decrease in the central bank’s assets and liabilities. W ...
... (2) Exchange rate peg and central bank balance sheet When there is excess supply of domestic currency: central bank buys domestic currency in exchange for foreign currency, losing foreign reserves and reducing money supply – a simultaneous decrease in the central bank’s assets and liabilities. W ...
LECTURE 6 : FISCAL POLICY 6.1 Introduction (i)Three roles of FP
... H do not view bonds as net wealth if they take into account the fact that taxes in future will have to be raised to service the debt and to repay the principal on the debt. RE depends on the following assumptions: (i)the absence of liquidity constrainst on H (i.e. H are able to borrow against expect ...
... H do not view bonds as net wealth if they take into account the fact that taxes in future will have to be raised to service the debt and to repay the principal on the debt. RE depends on the following assumptions: (i)the absence of liquidity constrainst on H (i.e. H are able to borrow against expect ...
in International Studies. Any expressed are those of the
... tax yields have not approached corresponding growth rates of real output. It follows directly that real after—tax yields must be even less. This is not to suggest that the real return to capital in the economy is less than the growth rate of real output; but the real rate of return on government bon ...
... tax yields have not approached corresponding growth rates of real output. It follows directly that real after—tax yields must be even less. This is not to suggest that the real return to capital in the economy is less than the growth rate of real output; but the real rate of return on government bon ...
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.