Secular Stagnation: The Long View
... A limitation of the evidence is that such series are not adjusted for product quality improvement, unlike studies for the post-World War II period which make an (admittedly imperfect) attempt to do so. Figure 6 shows Gordon’s quality-adjusted series through 1983 extended for two additional decades o ...
... A limitation of the evidence is that such series are not adjusted for product quality improvement, unlike studies for the post-World War II period which make an (admittedly imperfect) attempt to do so. Figure 6 shows Gordon’s quality-adjusted series through 1983 extended for two additional decades o ...
CHAPTER OVERVIEW
... If it is impossible to summarize oranges and apples as one statistic, as the saying goes, it is surely even more impossible to add oranges and, say, computers. If the production of oranges increases by 100 percent and that of computers by 10 percent, it does not make any sense to add the 100 percent ...
... If it is impossible to summarize oranges and apples as one statistic, as the saying goes, it is surely even more impossible to add oranges and, say, computers. If the production of oranges increases by 100 percent and that of computers by 10 percent, it does not make any sense to add the 100 percent ...
FRBSF E L CONOMIC ETTER
... imputed rents.The failure to take into account the influence of inflation on future nominal cash flows is an expectational error that is equivalent to discounting real cash flows using a nominal interest rate. Changing risk perceptions Asness (2000) shows that movements in the E/P ratio also appear ...
... imputed rents.The failure to take into account the influence of inflation on future nominal cash flows is an expectational error that is equivalent to discounting real cash flows using a nominal interest rate. Changing risk perceptions Asness (2000) shows that movements in the E/P ratio also appear ...
Practice Final Exam Economics 503 Fundamentals of Economic
... So that the only explanation is the Fed thinks there is a Output Gap = −.03 recession. ...
... So that the only explanation is the Fed thinks there is a Output Gap = −.03 recession. ...
Document
... A) rise planned investment rises, ceteris paribus. B) fall planned investment falls, ceteris paribus. C) rise planned investment does not change. D) rise planned investment falls, ceteris paribus. 13) If business firms are more optimistic during the expansion phase of the business cycle, they A) rai ...
... A) rise planned investment rises, ceteris paribus. B) fall planned investment falls, ceteris paribus. C) rise planned investment does not change. D) rise planned investment falls, ceteris paribus. 13) If business firms are more optimistic during the expansion phase of the business cycle, they A) rai ...
The Decision-Making Process
... Opportunity Costs and the Time Value Of Money opportunity cost refers to what a person gives up when a decision is made. This cost, also called a trade-off, may involve one or more of your resources (time, money, and effort). personal opportunity costs may involve time, health, or energy. For exampl ...
... Opportunity Costs and the Time Value Of Money opportunity cost refers to what a person gives up when a decision is made. This cost, also called a trade-off, may involve one or more of your resources (time, money, and effort). personal opportunity costs may involve time, health, or energy. For exampl ...
Practice Questions for review. Open Book The rule of 70 states that a
... D) unit-of-account 7. The nominal interest rate equals the: A) real interest rate times the rate of inflation. B) real interest rate minus the rate of inflation. C) real interest rate plus the rate of inflation. D) real interest rate when inflation is correctly anticipated. 8. Suppose that the nomin ...
... D) unit-of-account 7. The nominal interest rate equals the: A) real interest rate times the rate of inflation. B) real interest rate minus the rate of inflation. C) real interest rate plus the rate of inflation. D) real interest rate when inflation is correctly anticipated. 8. Suppose that the nomin ...
Newsletter September 2013 - Danielson Financial Group
... may be appropriate for you, consult me prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. The economic forecasts set forth in this letter may not develop as predicted. Yield is the income ...
... may be appropriate for you, consult me prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. The economic forecasts set forth in this letter may not develop as predicted. Yield is the income ...
AQA Economics Unit 4
... Low levels of investment in real capital • This could be caused by excessive long-term interest rates, or low levels of research and development. Low levels of investment in human capital • This involves a lack of investment in education and training, which reduce skill levels relative to competitor ...
... Low levels of investment in real capital • This could be caused by excessive long-term interest rates, or low levels of research and development. Low levels of investment in human capital • This involves a lack of investment in education and training, which reduce skill levels relative to competitor ...
Powerpoint Presentation
... • bubble theory • malinvestments • LR / SR distinction • P money illusion • interest rate too low o natural vs. loan • adaptive expectations • hands off policy ...
... • bubble theory • malinvestments • LR / SR distinction • P money illusion • interest rate too low o natural vs. loan • adaptive expectations • hands off policy ...
Powerpoint Presentation
... • bubble theory • malinvestments • LR / SR distinction • P money illusion • interest rate too low o natural vs. loan • adaptive expectations • hands off policy ...
... • bubble theory • malinvestments • LR / SR distinction • P money illusion • interest rate too low o natural vs. loan • adaptive expectations • hands off policy ...
Midterm 3
... Implicit Contract Theory Real Business Cycle Theory Lucas Misperceptions Theory Keynesian Business Cycle Theory Reverse Causation Theory ...
... Implicit Contract Theory Real Business Cycle Theory Lucas Misperceptions Theory Keynesian Business Cycle Theory Reverse Causation Theory ...
Lecture 8
... Aggregate demand: Equilibrium in the IS-LM model How to use the IS-LM model to analyse the effects of a change in some exogenous variable: • Determine whether disturbance shifts IS and/or LM curve(s) and draw new curves in the diagram • From the diagram, read what is the effect on interest rate and ...
... Aggregate demand: Equilibrium in the IS-LM model How to use the IS-LM model to analyse the effects of a change in some exogenous variable: • Determine whether disturbance shifts IS and/or LM curve(s) and draw new curves in the diagram • From the diagram, read what is the effect on interest rate and ...
The influence of monetary on aggregate demand (short run)
... – People - increase their holdings of money • Sell - interest-bearing assets ...
... – People - increase their holdings of money • Sell - interest-bearing assets ...
PDF Download
... The annual rate of growth of M3 stood at 11.4% in January 2008 compared to 12.0% in November 2007. The three-month average of the annual growth rate of M3 over the period from November 2007 to January 2008 reached 11.7% and, therefore, remained unchanged compared to that for the period August-Octobe ...
... The annual rate of growth of M3 stood at 11.4% in January 2008 compared to 12.0% in November 2007. The three-month average of the annual growth rate of M3 over the period from November 2007 to January 2008 reached 11.7% and, therefore, remained unchanged compared to that for the period August-Octobe ...
Chapter 26 Practice Quiz
... from $600 billion to $400 billion causes people to a. sell bonds and drive the price of bonds down. b. buy bonds and drive the price of bonds up. c. buy bonds and drive the price of bonds down. d. sell bonds and drive the price of bonds up. ANS: a. An excess quantity of money demanded causes people ...
... from $600 billion to $400 billion causes people to a. sell bonds and drive the price of bonds down. b. buy bonds and drive the price of bonds up. c. buy bonds and drive the price of bonds down. d. sell bonds and drive the price of bonds up. ANS: a. An excess quantity of money demanded causes people ...
Chapter 26 Practice Quiz
... from $600 billion to $400 billion causes people to a. sell bonds and drive the price of bonds down. b. buy bonds and drive the price of bonds up. c. buy bonds and drive the price of bonds down. d. sell bonds and drive the price of bonds up. ANS: a. An excess quantity of money demanded causes people ...
... from $600 billion to $400 billion causes people to a. sell bonds and drive the price of bonds down. b. buy bonds and drive the price of bonds up. c. buy bonds and drive the price of bonds down. d. sell bonds and drive the price of bonds up. ANS: a. An excess quantity of money demanded causes people ...
answers
... To invest in a project, they have to convince someone to give them the cash. That person has other stu¤ to do with the cash (this is measured by i), and so the …rm manager won’t even make an attempt at a project if its rate of return is less than i. For any …rm, the investment demand curve is a down ...
... To invest in a project, they have to convince someone to give them the cash. That person has other stu¤ to do with the cash (this is measured by i), and so the …rm manager won’t even make an attempt at a project if its rate of return is less than i. For any …rm, the investment demand curve is a down ...
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.