Causes of The Great Depression
... money supply and the level of business activity. If the supply of money and credit increases too rapidly, the result will be a period of rising prices known as inflation. ...
... money supply and the level of business activity. If the supply of money and credit increases too rapidly, the result will be a period of rising prices known as inflation. ...
chapter 13 - Ken Farr (GCSU)
... When the Federal Reserve sells government bonds to the public, it directly a. increases the M1 money supply and increases the reserves of the commercial banking system. b. increases the M1 money supply, while reducing the reserves of the commercial banking system. c. reduces the M1 money supply, whi ...
... When the Federal Reserve sells government bonds to the public, it directly a. increases the M1 money supply and increases the reserves of the commercial banking system. b. increases the M1 money supply, while reducing the reserves of the commercial banking system. c. reduces the M1 money supply, whi ...
Knight Time Review- answers Which of the following would be most
... a. When the interest rate rises, portfolio adjustments are made which increase the holdings of money. In short, as the opportunity cost of money goes down, people hold less. b. When the interest rate rises, portfolio adjustments are made which increase the holdings of money. In short, as the opportu ...
... a. When the interest rate rises, portfolio adjustments are made which increase the holdings of money. In short, as the opportunity cost of money goes down, people hold less. b. When the interest rate rises, portfolio adjustments are made which increase the holdings of money. In short, as the opportu ...
Chapter 2 Money and the Payments System
... • Commodity Money – Things that have intrinsic value • Fiat Money – Value comes from government decree (or fiat) ...
... • Commodity Money – Things that have intrinsic value • Fiat Money – Value comes from government decree (or fiat) ...
IS LM - Yale Economics
... – Foreign trade, government spending and taxes were too small – No exogenous consumption shock From I? – Investment decline was the major shock. – Mechanism is unclear, but probably due to shift to “bad equilibrium” (panics, risk, high risk premiums, low investment. A variant of the IS curve shift.) ...
... – Foreign trade, government spending and taxes were too small – No exogenous consumption shock From I? – Investment decline was the major shock. – Mechanism is unclear, but probably due to shift to “bad equilibrium” (panics, risk, high risk premiums, low investment. A variant of the IS curve shift.) ...
Unit 6 RP
... b. Suppose that velocity is constant and the economy’s output of goods and services rises by 5% each year. What will happen to nominal GDP and the price level the next year if the FED keeps the money supply constant? c. What money supply should the FED set next year if it wants to keep the price lev ...
... b. Suppose that velocity is constant and the economy’s output of goods and services rises by 5% each year. What will happen to nominal GDP and the price level the next year if the FED keeps the money supply constant? c. What money supply should the FED set next year if it wants to keep the price lev ...
Y 1
... As real income rises, Households purchase more goods and services, so demand for money increases. Households sell bonds to increase money holdings Increase in IR increases cost of holding money. Therefore, quantity of money demanded decreases. Decreasing IR decreases cost of holding money, so money ...
... As real income rises, Households purchase more goods and services, so demand for money increases. Households sell bonds to increase money holdings Increase in IR increases cost of holding money. Therefore, quantity of money demanded decreases. Decreasing IR decreases cost of holding money, so money ...
Units 4 Breakdown: Money Market, Banking and Multiple Deposit
... Open Market Operations Excess Reserves Discount Rate Federal Funds Rate Key Information to Know (answer): 1. List and explain the 3 tools of monetary 3. How does the government target interest policy. rates of banks? 2. If there is a recession, what monetary policy 4. What changes the demand for mon ...
... Open Market Operations Excess Reserves Discount Rate Federal Funds Rate Key Information to Know (answer): 1. List and explain the 3 tools of monetary 3. How does the government target interest policy. rates of banks? 2. If there is a recession, what monetary policy 4. What changes the demand for mon ...
Definitions and explanations
... operatives on the construction and maintenance of their own premises. The value of goods made by businesses themselves and used in the work is also included. In all returns, work done by sub-contractors is excluded to avoid double counting, since subcontractors are also sampled. Output does not incl ...
... operatives on the construction and maintenance of their own premises. The value of goods made by businesses themselves and used in the work is also included. In all returns, work done by sub-contractors is excluded to avoid double counting, since subcontractors are also sampled. Output does not incl ...
The Monetary System
... • Early trade was done through Bartering = Exchanging goods/services • In ancient and even 100 years ago people exchanged something other than coins or paper money. • Doctors as recently as 1900 accepted chickens, pigs and other items in exchange for medical care ...
... • Early trade was done through Bartering = Exchanging goods/services • In ancient and even 100 years ago people exchanged something other than coins or paper money. • Doctors as recently as 1900 accepted chickens, pigs and other items in exchange for medical care ...
liquidity trap - Princeton University Press
... Overcoming a Liquidity Trap Because conventional monetary policy becomes ineffective in a liquidity trap, other policy measures are suggested as a remedy to get the economy out of the trap. The monetarist view suggests quantitative easing as a solution to the liquidity trap. Quantitative easing usua ...
... Overcoming a Liquidity Trap Because conventional monetary policy becomes ineffective in a liquidity trap, other policy measures are suggested as a remedy to get the economy out of the trap. The monetarist view suggests quantitative easing as a solution to the liquidity trap. Quantitative easing usua ...