quiz 9
... d. All of the above are correct. 2. If a society chooses to use fiat money, it a. must guarantee the convertibility of its currency into gold. b. give its central bank independence. c. cannot make use of a banking system. d. must have a mechanism for regulating the quantity of money in the economy. ...
... d. All of the above are correct. 2. If a society chooses to use fiat money, it a. must guarantee the convertibility of its currency into gold. b. give its central bank independence. c. cannot make use of a banking system. d. must have a mechanism for regulating the quantity of money in the economy. ...
Understanding why Inflation is not always bad
... small salary and defers increments and bonus. In the absence of less money even low prices in the ...
... small salary and defers increments and bonus. In the absence of less money even low prices in the ...
The Federal Reserve
... Interest Rates and Spending • If the Fed adopts an easy money policy, it will increase the money supply. This will lower interest rates and increase spending. This causes the economy to expand. • If the Fed adopts a tight money policy, it will decrease the money supply. This will push interest rates ...
... Interest Rates and Spending • If the Fed adopts an easy money policy, it will increase the money supply. This will lower interest rates and increase spending. This causes the economy to expand. • If the Fed adopts a tight money policy, it will decrease the money supply. This will push interest rates ...
Lecture 1: Why study Money, Banking and Financial Markets? Intro
... baks in Europe – Societe Generale; big losses from the sub-prime mortgage investments of the largest banks in US were also announced. Why are these things happening? And, when they are happening, what is their impact on incomes, investment, savings of the local economy? How are the effects from one ...
... baks in Europe – Societe Generale; big losses from the sub-prime mortgage investments of the largest banks in US were also announced. Why are these things happening? And, when they are happening, what is their impact on incomes, investment, savings of the local economy? How are the effects from one ...
Fiscal Policy
... Types of inflation Demand-pull inflation Cost push inflation (Supply shock – major source of cost-push inflation) Hyperinflation Redistribution effects of inflation. Who is helped or hurt by inflation? Creditors with fixed or variable interest rate loans ...
... Types of inflation Demand-pull inflation Cost push inflation (Supply shock – major source of cost-push inflation) Hyperinflation Redistribution effects of inflation. Who is helped or hurt by inflation? Creditors with fixed or variable interest rate loans ...
Unit 3 Macroeconomics-pp
... monthly statistical series that usually turns down before real GDP turns down, and turns up before real GDP turns up. It’s like trying to forecast where the economy is headed in the future. ...
... monthly statistical series that usually turns down before real GDP turns down, and turns up before real GDP turns up. It’s like trying to forecast where the economy is headed in the future. ...
Aggregate Demand and Aggregate Supply
... a. lower prices increase the value of money holdings and consumer spending increases. b. lower prices decrease the value of money 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 of money holdings and consumer spending decreases. c. lower prices reduce money holdings, increase lending, interest rates fall, and investment spending increases. d. lower prices ...
A rise in the price of oil imports has resulted in a decrease of short
... 30. A person who never learned a marketable labor skill is in which type of unemployment? a. Frictional. b. Structural. c. Cyclical. d. Seasonal. 31. Why is the LRAS curve a vertical line straight up? a. Because at higher prices, people don’t want to buy more goods. b. Because when sales prices of p ...
... 30. A person who never learned a marketable labor skill is in which type of unemployment? a. Frictional. b. Structural. c. Cyclical. d. Seasonal. 31. Why is the LRAS curve a vertical line straight up? a. Because at higher prices, people don’t want to buy more goods. b. Because when sales prices of p ...
14.02 Principles of Macroeconomics
... . Since 0<θ<1, this is always greater than c + θ (1 − c) one if individuals in the economy hold both currency and checkable deposits (0
... . Since 0<θ<1, this is always greater than c + θ (1 − c) one if individuals in the economy hold both currency and checkable deposits (0
Exam 11th Febraury 2005: Solution
... economy’s production of goods and services. Real GDP uses constant base-year prices to place a value on the economy’s production of goods and services. Because Real GDP is not affected by changes in prices, changes in real GDP reflect only changes in the amounts being produced. Thus, real GDP is a m ...
... economy’s production of goods and services. Real GDP uses constant base-year prices to place a value on the economy’s production of goods and services. Because Real GDP is not affected by changes in prices, changes in real GDP reflect only changes in the amounts being produced. Thus, real GDP is a m ...
A Rise In The Price Of Oil Imports Has
... 24. What goes down when an economy goes into a recession in the short-run? a. output. b. unemployment. c. wages. d. both a and c. 25. What happens when there is a shortage in the labor market? a. wages rise. b. wages fall. c. wages stay the same. 26. If we are in an inflationary gap, the government ...
... 24. What goes down when an economy goes into a recession in the short-run? a. output. b. unemployment. c. wages. d. both a and c. 25. What happens when there is a shortage in the labor market? a. wages rise. b. wages fall. c. wages stay the same. 26. If we are in an inflationary gap, the government ...
Unit 3 Macroeconomics-pp_UPDATED 2013
... monthly statistical series that usually turns down before real GDP turns down, and turns up before real GDP turns up. It’s like trying to forecast where the economy is headed in the future. ...
... monthly statistical series that usually turns down before real GDP turns down, and turns up before real GDP turns up. It’s like trying to forecast where the economy is headed in the future. ...
the main causes of inflation
... contraction in real output as well a higher average price level. Will an increase in a firm’s costs always feed through into inflation? No, because a business can absorb an increase in costs by reducing its profit margin. An example of this occurred after the devaluation of Baht in1997 . The fall in ...
... contraction in real output as well a higher average price level. Will an increase in a firm’s costs always feed through into inflation? No, because a business can absorb an increase in costs by reducing its profit margin. An example of this occurred after the devaluation of Baht in1997 . The fall in ...
Will Guarding Against Deflation Now Lead to an Inflation
... of prices in the economy as a result of an increase in demand that outstrips the supply of scarce resources. The current U.S. economy (and indeed the global economy as well) is characterized by a state of excess supply – factories sit empty and the unemployment rate is approaching double digits. In ...
... of prices in the economy as a result of an increase in demand that outstrips the supply of scarce resources. The current U.S. economy (and indeed the global economy as well) is characterized by a state of excess supply – factories sit empty and the unemployment rate is approaching double digits. In ...
Macroeconomics
... Attendance: Three-strike policy - absence from more than 25 percent of the classes for each semester results in automatic failure. If you arrive late to the class, it is your responsibility to let me know at the end of class so that I can check off your name. Participation: Your quality participatio ...
... Attendance: Three-strike policy - absence from more than 25 percent of the classes for each semester results in automatic failure. If you arrive late to the class, it is your responsibility to let me know at the end of class so that I can check off your name. Participation: Your quality participatio ...
THE CENTRAL BANK AND INFLATION
... We know that any factor that increases demand for goods and services in an economy or that decreases the supply of goods and services can push up the price level. However, if inflation is persistent and rapid, the ultimate source of this is rapid increase in the money supply. To see why this is so r ...
... We know that any factor that increases demand for goods and services in an economy or that decreases the supply of goods and services can push up the price level. However, if inflation is persistent and rapid, the ultimate source of this is rapid increase in the money supply. To see why this is so r ...