Macro - Unit 4
... 4. Which of the following are true statements about the federal funds rate? I. It is the same thing as the discount rate II.It is the interest rate that banks charge each other for shortterm loans III.It is influenced by open market operations A. I only B. II only C. III only D. I and II only E. II ...
... 4. Which of the following are true statements about the federal funds rate? I. It is the same thing as the discount rate II.It is the interest rate that banks charge each other for shortterm loans III.It is influenced by open market operations A. I only B. II only C. III only D. I and II only E. II ...
Answer Key
... Recall that the growth rate of a ratio is the difference between the growth rate of the numerator and denominator so the growth rate of money is the growth rate of GDP divided by the growth rate of velocity: gM = gGDP – gV. Recall, also that the growth rate of a product of two variables is the sum o ...
... Recall that the growth rate of a ratio is the difference between the growth rate of the numerator and denominator so the growth rate of money is the growth rate of GDP divided by the growth rate of velocity: gM = gGDP – gV. Recall, also that the growth rate of a product of two variables is the sum o ...
ECON 2020 – 200 Spring 2003 Homework #10: Chapter 14
... a. lower prices increase the value of money holdings and consumer spending increases. b. lower prices decrease the value ofmoney holdings and consumer spending decreases. c. lower prices reduce money holdings, increase lending, interest rates fall, and investment spending increases. d. lower prices ...
... a. lower prices increase the value of money holdings and consumer spending increases. b. lower prices decrease the value ofmoney holdings and consumer spending decreases. c. lower prices reduce money holdings, increase lending, interest rates fall, and investment spending increases. d. lower prices ...
Easy Tight Monetary policy matching
... want to borrow less and spend less The Fed raises the The goal of this reserve policy is to take requirement that money out of banks have to keep circulation to so less money is decrease available aggregate demand. The Fed wants Less money in consumers to stop circulation spending money. ...
... want to borrow less and spend less The Fed raises the The goal of this reserve policy is to take requirement that money out of banks have to keep circulation to so less money is decrease available aggregate demand. The Fed wants Less money in consumers to stop circulation spending money. ...
Goal 1: Compare two types of inflation Type 1: Demand
... is the result of a total demand for goods and services that is greater than the supply. -demand-pull inflation usually occurs when the economy is in the expansion part of the business cycle -happens with growing production, growing investments, and growing employment -consumers are confident and wan ...
... is the result of a total demand for goods and services that is greater than the supply. -demand-pull inflation usually occurs when the economy is in the expansion part of the business cycle -happens with growing production, growing investments, and growing employment -consumers are confident and wan ...
14.02 Principles of Macroeconomics Spring 03 Quiz 2 Thursday, April 10, 2003
... 8. The modified Phillips curve tell us that the only way to reduce inflation is through a) unemployment rates higher than the natural rate b) expansionary fiscal policy c) unemployment rates lower than the natural rate d) contractionary fiscal policy 9. Stock prices increase if: a) Money supply incr ...
... 8. The modified Phillips curve tell us that the only way to reduce inflation is through a) unemployment rates higher than the natural rate b) expansionary fiscal policy c) unemployment rates lower than the natural rate d) contractionary fiscal policy 9. Stock prices increase if: a) Money supply incr ...
Short answer essay
... c. changes in government expenditures and taxation to achieve particular economic goals. 7. Using the AS-AD model, if a country is currently in a recession, which of the following suggestions will lead to an economic recovery and NOT lead to an increase in the price level, other things constant? d. ...
... c. changes in government expenditures and taxation to achieve particular economic goals. 7. Using the AS-AD model, if a country is currently in a recession, which of the following suggestions will lead to an economic recovery and NOT lead to an increase in the price level, other things constant? d. ...
Inflation – Different Types and Impacts
... services over a period of time is called deflation. When deflation occurs it is possible to buy more amount of goods with the same amount of money. Deflation has often had the side effect of increasing unemployment in an economy, since the process often leads to a lower level of demand in the econom ...
... services over a period of time is called deflation. When deflation occurs it is possible to buy more amount of goods with the same amount of money. Deflation has often had the side effect of increasing unemployment in an economy, since the process often leads to a lower level of demand in the econom ...
Model Paper Macro Economics
... Q. 1) Can we justify the dominance of money over the barter system by the functions it performs? How can financial intermediaries play their role in this regard? Q. 2) Fiscal and Monetary policies are the two different approaches to achieve the same goal i.e. of controlling imbalances. Discuss. Also ...
... Q. 1) Can we justify the dominance of money over the barter system by the functions it performs? How can financial intermediaries play their role in this regard? Q. 2) Fiscal and Monetary policies are the two different approaches to achieve the same goal i.e. of controlling imbalances. Discuss. Also ...
QUIZ 2: Macro – Winter 2002 - The University of Chicago Booth
... For the entire quiz, make the following assumptions. (1) All consumers are non-liquidity constrained, non-ricardian PIH, (2) Prices are held fixed unless told otherwise, (3) expected inflation does not affect money demand (MD), (4) the capital stock (K) is fixed, (5) all exogenous variables (A, tax ...
... For the entire quiz, make the following assumptions. (1) All consumers are non-liquidity constrained, non-ricardian PIH, (2) Prices are held fixed unless told otherwise, (3) expected inflation does not affect money demand (MD), (4) the capital stock (K) is fixed, (5) all exogenous variables (A, tax ...
Liquidity Trap - Portland State University
... lowers output even further while monetary policy is ineffective. In the case of the Great Depression in the US, between 1929 and 1933, the average inflation rate was -6.7%. Not until 1943 did the price level go back to that of 1929. In the case of the more recent Japanese slump, deflation started in ...
... lowers output even further while monetary policy is ineffective. In the case of the Great Depression in the US, between 1929 and 1933, the average inflation rate was -6.7%. Not until 1943 did the price level go back to that of 1929. In the case of the more recent Japanese slump, deflation started in ...
1 Washington University Spring 2008 Department of Economics
... constant 4 percent per year; b. a government follows a policy of keeping government spending over a calendar year equal to government revenue over the calendar year; c. the central bank uses judgment to adjust the growth of the money supply based on expectations of what will happen to output and inf ...
... constant 4 percent per year; b. a government follows a policy of keeping government spending over a calendar year equal to government revenue over the calendar year; c. the central bank uses judgment to adjust the growth of the money supply based on expectations of what will happen to output and inf ...
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... The CPI is calculated by giving a value of 100 for the reference period and comparing prices of the observation period with those of the reference period. Inflation is defined as a situation in which the CPI persistently rises; on the contrary, deflation is defined as a situation in which the CPI ke ...
... The CPI is calculated by giving a value of 100 for the reference period and comparing prices of the observation period with those of the reference period. Inflation is defined as a situation in which the CPI persistently rises; on the contrary, deflation is defined as a situation in which the CPI ke ...
宏观经济学（双语教学）教学大纲 Macroeconomics syllabus 一、课程的
... (2) Explain whether the following statements are true, false, or uncertain. a. “Inflation hurts borrowers and helps lenders, because borrowers must pay a higher rate of interest”. b. “If prices change in way that leaves the overall price level unchanged, then no one is made better or worse off.” c. ...
... (2) Explain whether the following statements are true, false, or uncertain. a. “Inflation hurts borrowers and helps lenders, because borrowers must pay a higher rate of interest”. b. “If prices change in way that leaves the overall price level unchanged, then no one is made better or worse off.” c. ...
Final Exam - Whitman People
... (a) (5pts) Use the Keynesian stick-wage Aggregate-Demand Aggregate-Supply (AD-AS) model to describe the macroeconomic results of this policy over the period 1965-1973. Refer to an ADAS graph in your analysis. On page 650, Mishkin continues his analysis through the 1970’s. He states “after 1975, the ...
... (a) (5pts) Use the Keynesian stick-wage Aggregate-Demand Aggregate-Supply (AD-AS) model to describe the macroeconomic results of this policy over the period 1965-1973. Refer to an ADAS graph in your analysis. On page 650, Mishkin continues his analysis through the 1970’s. He states “after 1975, the ...