Macroeconomics
... trillion, that’s a deficit of $1 trillion. In order to pay for the difference, the government has to borrow money from itself, American citizens, foreign countries, and other sources. • The federal budget deficit for 2009 was a record-breaking $1.4 trillion and $1.3 trillion in 2010. • The national ...
... trillion, that’s a deficit of $1 trillion. In order to pay for the difference, the government has to borrow money from itself, American citizens, foreign countries, and other sources. • The federal budget deficit for 2009 was a record-breaking $1.4 trillion and $1.3 trillion in 2010. • The national ...
Graphing Symbols
... quantity (individual products or aggregate q. of GDP) PPC production possibilities curve = PPF = prod. poss. frontier D demand of an individual product S supply of an individual product GDP gross domestic product DI disposable income MPC marginal propensity to consume MPS marginal propensity to save ...
... quantity (individual products or aggregate q. of GDP) PPC production possibilities curve = PPF = prod. poss. frontier D demand of an individual product S supply of an individual product GDP gross domestic product DI disposable income MPC marginal propensity to consume MPS marginal propensity to save ...
Answer Key Testname: QUIZ5.TST
... A) a decrease in interest rates will cause the demand for money to increase. B) an increase in interest rates will cause the demand for money to fall. ...
... A) a decrease in interest rates will cause the demand for money to increase. B) an increase in interest rates will cause the demand for money to fall. ...
Deflation: Economic Significance, Current Risk, and Policy Responses
... •Monetary stimulus's lack of effect on real economic activity in times of financial crisis when the demand for liquidity increases sharply. • Banks’ lack of the needed degree of confidence. ...
... •Monetary stimulus's lack of effect on real economic activity in times of financial crisis when the demand for liquidity increases sharply. • Banks’ lack of the needed degree of confidence. ...
New Keynesian Economics
... that the real rate is assumed to be constant so a rise in i means an increase in expected inflation, which, in turn, reduces the desirability of holding home’s currency • Also, for a country that is not inflating, rising rates of GDP growth lead to greater exports; who else will buy the excess outpu ...
... that the real rate is assumed to be constant so a rise in i means an increase in expected inflation, which, in turn, reduces the desirability of holding home’s currency • Also, for a country that is not inflating, rising rates of GDP growth lead to greater exports; who else will buy the excess outpu ...
Ch 18 Milton Friedman
... Money affects output • Money supply does have a positive effect on employment and production in the short run – This is because of “money illusion”. ...
... Money affects output • Money supply does have a positive effect on employment and production in the short run – This is because of “money illusion”. ...
Deflation—The Cycle Isn`t Over
... In order to have inflation, consumers must be both willing and able to pay more for products. Increases in personal disposable income have been meager since the beginning of the year. Wage increases remain nominal, certainly not providing consumers with the ability to spend more on their purchases. ...
... In order to have inflation, consumers must be both willing and able to pay more for products. Increases in personal disposable income have been meager since the beginning of the year. Wage increases remain nominal, certainly not providing consumers with the ability to spend more on their purchases. ...
Joseph Yam on Deflation (1)
... total decline in the Composite Consumer Price Index (Chart 2). In addition, the decline in property prices (which are not themselves a component of the CPI) has also dampened private consumption and investment. Even though, as banking supervisors, we had insisted on the observance of the 70 per cent ...
... total decline in the Composite Consumer Price Index (Chart 2). In addition, the decline in property prices (which are not themselves a component of the CPI) has also dampened private consumption and investment. Even though, as banking supervisors, we had insisted on the observance of the 70 per cent ...
Stagflation is unique situation where there is high
... itself is a difficult situation for any country. This is why stagflation is so dangerous. Imagine a scenario in which you have both a sinking economy and runaway inflation. With high unemployment, consumers have less money to spend. Add inflation, and the money they do have is worth less and less ev ...
... itself is a difficult situation for any country. This is why stagflation is so dangerous. Imagine a scenario in which you have both a sinking economy and runaway inflation. With high unemployment, consumers have less money to spend. Add inflation, and the money they do have is worth less and less ev ...
Chapter 13: Macroeconomics
... Producer Price Index (PPI)- Goods sold to producers; mining, manufacturing, and farming ...
... Producer Price Index (PPI)- Goods sold to producers; mining, manufacturing, and farming ...
The Great Depression
... prices dropped lower and a given amount of money bought ever more goods, exacerbating the drop in demand. •Monetarists believe that the Great Depression started as an ordinary recession, but that significant policy mistakes by monetary authorities (especially the Federal Reserve), caused a shrinking ...
... prices dropped lower and a given amount of money bought ever more goods, exacerbating the drop in demand. •Monetarists believe that the Great Depression started as an ordinary recession, but that significant policy mistakes by monetary authorities (especially the Federal Reserve), caused a shrinking ...
debt deflation - Cognetti de Martiis
... this effect does not crucially depend on inflation being negative. It starts operating when inflation is lower than the rate of inflation that was expected when debt contracts were made. (Thus, during the last ten years inflation expectations in the euro zone have been very close to 2%. Current nomi ...
... this effect does not crucially depend on inflation being negative. It starts operating when inflation is lower than the rate of inflation that was expected when debt contracts were made. (Thus, during the last ten years inflation expectations in the euro zone have been very close to 2%. Current nomi ...
Determinants of Interest Rates
... ceteris paribus, the quantity demanded of bonds is higher—an inverse relationship • At lower prices (higher interest rates), ceteris paribus, the quantity supplied of bonds is lower—a positive relationship • Market equilibrium— the price where the quantity people are willing to buy equals the quanti ...
... ceteris paribus, the quantity demanded of bonds is higher—an inverse relationship • At lower prices (higher interest rates), ceteris paribus, the quantity supplied of bonds is lower—a positive relationship • Market equilibrium— the price where the quantity people are willing to buy equals the quanti ...
Inflation or Deflation? - The International Economy
... consistent with the difference in interest rates between ordiSustained budget deficits crowd out private investment, nary U.S. government bonds and Treasury Inflation Protected push up long-term real interest rates, and increase the burden on Securities. With such expectations, consumers have no rea ...
... consistent with the difference in interest rates between ordiSustained budget deficits crowd out private investment, nary U.S. government bonds and Treasury Inflation Protected push up long-term real interest rates, and increase the burden on Securities. With such expectations, consumers have no rea ...
2. The Liberal Response to Classical Liberalism
... against the owners should they refuse to negotiate. • He called this a “square deal” and eventually forced the arbitration. • In 1912, T. Roosevelt went on to form the National Progressive Party because he felt the Democrats and Republicans were too resistant to change. ...
... against the owners should they refuse to negotiate. • He called this a “square deal” and eventually forced the arbitration. • In 1912, T. Roosevelt went on to form the National Progressive Party because he felt the Democrats and Republicans were too resistant to change. ...
personal finance - De Smet Jesuit High School
... f. High interest rates will decrease stock prices: i. This is a major indicator of how the stock market will react to higher interest rates. ...
... f. High interest rates will decrease stock prices: i. This is a major indicator of how the stock market will react to higher interest rates. ...