C:\Documents and Settings\Ivan
... s2 is a best response to s1. Here, for instance, (Raise M, Raise P) is a Nash equilibrium because if the Fed raises M, then the best thing the Firm can do is to raise P; and if the Firm raises P, the best thing the Fed can do is to raise M. We can check for the other Nash equilibrium similarly.) The ...
... s2 is a best response to s1. Here, for instance, (Raise M, Raise P) is a Nash equilibrium because if the Fed raises M, then the best thing the Firm can do is to raise P; and if the Firm raises P, the best thing the Fed can do is to raise M. We can check for the other Nash equilibrium similarly.) The ...
4 - GEOCITIES.ws
... decreases significantly the hours people work. has a relatively small effect on the aggregate supply curve. All of the above are correct. ...
... decreases significantly the hours people work. has a relatively small effect on the aggregate supply curve. All of the above are correct. ...
View - Ferguson Wellman Capital Management
... federal dollars. Despite the increased highway funding, we would expect the overall new issuance to remain on the lower side, continuing the trend of low supply providing pricing support. The difference between 2- and 10-year yields on the municipal yield curve fell to 1.34 percent in early December ...
... federal dollars. Despite the increased highway funding, we would expect the overall new issuance to remain on the lower side, continuing the trend of low supply providing pricing support. The difference between 2- and 10-year yields on the municipal yield curve fell to 1.34 percent in early December ...
Phillips Curve FRQs answers
... the following as the economy approaches a new long-run equilibrium? (i) The short-run Phillips curve. Explain. 1) SRPC shifts left because inflation expectations decrease…remember that the AD shift left will be followed by an SRAS curve shift right when wages fall (ii) The natural rate of unemployme ...
... the following as the economy approaches a new long-run equilibrium? (i) The short-run Phillips curve. Explain. 1) SRPC shifts left because inflation expectations decrease…remember that the AD shift left will be followed by an SRAS curve shift right when wages fall (ii) The natural rate of unemployme ...
What characteristics of an asset make it useful as a medium of
... fancy designs for larger denominations and coins for smaller denominations. For an asset to be useful as a store of value, it must be something that maintains its value over time and something that can be used directly to buy goods and services or sold when money is needed. In addition to currency, ...
... fancy designs for larger denominations and coins for smaller denominations. For an asset to be useful as a store of value, it must be something that maintains its value over time and something that can be used directly to buy goods and services or sold when money is needed. In addition to currency, ...
Chapter 28 Exchange Rates and Macroeconomic Policy
... GDP, an increase in the relative interest rate in the United States, a change in tastes that makes U.S. goods more desirable to foreigners, a relative decrease in prices in the United States, and an expectation that the foreign currency will depreciate. The following shift the supply of foreign curr ...
... GDP, an increase in the relative interest rate in the United States, a change in tastes that makes U.S. goods more desirable to foreigners, a relative decrease in prices in the United States, and an expectation that the foreign currency will depreciate. The following shift the supply of foreign curr ...
Chapter 16 Exchange Rates and Macroeconomic Policy
... GDP, an increase in the relative interest rate in the United States, a change in tastes that makes U.S. goods more desirable to foreigners, a relative decrease in prices in the United States, and an expectation that the foreign currency will depreciate. The following shift the supply of foreign curr ...
... GDP, an increase in the relative interest rate in the United States, a change in tastes that makes U.S. goods more desirable to foreigners, a relative decrease in prices in the United States, and an expectation that the foreign currency will depreciate. The following shift the supply of foreign curr ...
Macro1 Exercise #4
... What is the new long run unemployment rate after this action? __________. Does it appear that the recession has ended? __________. What is the major drawback to the successful reduction of the long run unemployment rate? _______________________________________________. Click “See Graph” and draw the ...
... What is the new long run unemployment rate after this action? __________. Does it appear that the recession has ended? __________. What is the major drawback to the successful reduction of the long run unemployment rate? _______________________________________________. Click “See Graph” and draw the ...
Monetary policy
... investors through Fannie Mae and Freddie Mac to banks and, ultimately, to individuals and families borrowing money to buy houses. • Major commercial and investment banks borrowed heavily to buy these mortgages (and other loans), bundled them into Collateralized Debt Obligations (CDOs, one flavor of ...
... investors through Fannie Mae and Freddie Mac to banks and, ultimately, to individuals and families borrowing money to buy houses. • Major commercial and investment banks borrowed heavily to buy these mortgages (and other loans), bundled them into Collateralized Debt Obligations (CDOs, one flavor of ...
The Great Depression
... US in the early 1930s. However, there is disagreement among economists as to what turned the recession into a Depression. The Keynesian argument is that continued uncertainty led to a fall in investment demand and a fall in autonomous expenditure (expenditure unrelated to the level of real GDP). The ...
... US in the early 1930s. However, there is disagreement among economists as to what turned the recession into a Depression. The Keynesian argument is that continued uncertainty led to a fall in investment demand and a fall in autonomous expenditure (expenditure unrelated to the level of real GDP). The ...
2nd Homework - Samuel Moon Jung
... A) An increase in tax rates will increase the demand for Treasury bonds, lowering their interest rates. B) Because the tax-exempt status of municipal bonds was of little benefit to bond holders when tax rates were low, they had higher interest rates than U.S. government bonds before World War II. C) ...
... A) An increase in tax rates will increase the demand for Treasury bonds, lowering their interest rates. B) Because the tax-exempt status of municipal bonds was of little benefit to bond holders when tax rates were low, they had higher interest rates than U.S. government bonds before World War II. C) ...
Dr. SK Mitchell - people.vcu.edu
... Why do liberals tend to favor increased government spending while conservatives tend to favor decreased taxes as the preferred tool of expansionary fiscal policy? What are the reasons for and against counter-cyclical policies? In the case of a contractionary gap, which will result in the largest pri ...
... Why do liberals tend to favor increased government spending while conservatives tend to favor decreased taxes as the preferred tool of expansionary fiscal policy? What are the reasons for and against counter-cyclical policies? In the case of a contractionary gap, which will result in the largest pri ...
The IS-LM model
... The goods market, which is at equilibrium when investments equal savings, hence IS. The money market, which is at equilibrium when the demand for liquidity equals money supply, hence LM. Examining the joint equilibrium in these two markets allows us to determine two variables : output Y and the inte ...
... The goods market, which is at equilibrium when investments equal savings, hence IS. The money market, which is at equilibrium when the demand for liquidity equals money supply, hence LM. Examining the joint equilibrium in these two markets allows us to determine two variables : output Y and the inte ...
PDF - Nedgroup Investments
... We question what’s sustainable. One successful real estate investor pointed out that as much as he’d like to liquidate his entire portfolio today at huge gains, he’d have a lot of money after paying taxes but no income. So he won’t sell and others, who want or need more return than a conservative in ...
... We question what’s sustainable. One successful real estate investor pointed out that as much as he’d like to liquidate his entire portfolio today at huge gains, he’d have a lot of money after paying taxes but no income. So he won’t sell and others, who want or need more return than a conservative in ...
The Dazzling Dollar (Brookings Papers on Economic Activity, 1985
... short-termbonds, andwhy the long-terminterestrate may not equalthe average of expected future short-termrates. Risk would also account for the diversityin expected rates of returnon bonds and equity capital. This problemis addressedfurtherbelow. For now, I will assume that 2. Any such calculation is ...
... short-termbonds, andwhy the long-terminterestrate may not equalthe average of expected future short-termrates. Risk would also account for the diversityin expected rates of returnon bonds and equity capital. This problemis addressedfurtherbelow. For now, I will assume that 2. Any such calculation is ...
AP Macreconomics - Graphical Overview
... 68. In macroeconomics, what is the difference between the short run and the long run? ...
... 68. In macroeconomics, what is the difference between the short run and the long run? ...
Nicaragua_en.pdf
... economic activity averaged increases of 1.7%, compared with a fall of 2.8% during the same period in 2009. This recovery was mainly due to growth in manufacturing, livestock breeding and commerce. (b) Prices, wages and employment At the national level, year-on-year inflation measured by the Consumer ...
... economic activity averaged increases of 1.7%, compared with a fall of 2.8% during the same period in 2009. This recovery was mainly due to growth in manufacturing, livestock breeding and commerce. (b) Prices, wages and employment At the national level, year-on-year inflation measured by the Consumer ...
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.