1 - people.stfx.ca
... hold reserves equal to 10% of deposits and that the public wishes to hold 5% of its deposits in the bank as cash, describe the open market operation and give the monetary value of the initial transaction which the Bank of Canada must undertake in order to achieve the desired expansion of the money s ...
... hold reserves equal to 10% of deposits and that the public wishes to hold 5% of its deposits in the bank as cash, describe the open market operation and give the monetary value of the initial transaction which the Bank of Canada must undertake in order to achieve the desired expansion of the money s ...
Economics Practice Test 5
... controlled by one firm that sets prices. A) True B) False Sole proprietorships produce most of the goods and services in the United States. A) True B) False ...
... controlled by one firm that sets prices. A) True B) False Sole proprietorships produce most of the goods and services in the United States. A) True B) False ...
Money and Monetary Policy
... 2. A capital gain is earned when a stockholder sells stock for more than he or she paid for it. A stockholder that sells stock at a lower price than the purchase price suffers a capital loss. ...
... 2. A capital gain is earned when a stockholder sells stock for more than he or she paid for it. A stockholder that sells stock at a lower price than the purchase price suffers a capital loss. ...
The Monetary Approach to the Balance of Payments
... Because the balance of payments equals the sum of the current and (nonreserve) financial account surpluses (see International Economics Chapter 13, International Finance Chapter 2), much of the economics literature that appeared before the monetary approach was developed explained balance of payment ...
... Because the balance of payments equals the sum of the current and (nonreserve) financial account surpluses (see International Economics Chapter 13, International Finance Chapter 2), much of the economics literature that appeared before the monetary approach was developed explained balance of payment ...
CHAPTER 9 Introduction to Economic Fluctuations
... 2. Aggregate demand is the relation between the quantity of output demanded and the aggregate price level. To understand why the aggregate demand curve slopes downward, we need to develop a theory of aggregate demand. One simple theory of aggregate demand is based on the quantity theory of money. Wr ...
... 2. Aggregate demand is the relation between the quantity of output demanded and the aggregate price level. To understand why the aggregate demand curve slopes downward, we need to develop a theory of aggregate demand. One simple theory of aggregate demand is based on the quantity theory of money. Wr ...
EC 102
... Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased. b. your nominal wage increase. If your nominal wage rose b ...
... Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased. b. your nominal wage increase. If your nominal wage rose b ...
i 2 - Chandler Unified School District
... government banks, NOT the USA ____________ high degree of independence. B/c Fed officials aren’t elected, the Fed most often acts with the best interests of the country in mind, unlike politicians who have to worry ...
... government banks, NOT the USA ____________ high degree of independence. B/c Fed officials aren’t elected, the Fed most often acts with the best interests of the country in mind, unlike politicians who have to worry ...
macroeconomic principles (econ
... 1. Substitution Bias – the CPI uses fixed weights or quantities. However, when the relative price of apples increases, people consume less apples (Q apples falls) and more oranges (Q oranges rises). The true weights have changed but the index weights remain the same. The weight on the more expensive ...
... 1. Substitution Bias – the CPI uses fixed weights or quantities. However, when the relative price of apples increases, people consume less apples (Q apples falls) and more oranges (Q oranges rises). The true weights have changed but the index weights remain the same. The weight on the more expensive ...
PAGE ONE Economics - Federal Reserve Bank of St. Louis
... With a gold standard, the value of a country’s money is tied to its stock of gold reserves. That is, each unit of currency (e.g., a dollar) is tied to a specific amount of gold and is redeemable for that specific amount of gold.2 The government’s ability to increase the money supply is then restrain ...
... With a gold standard, the value of a country’s money is tied to its stock of gold reserves. That is, each unit of currency (e.g., a dollar) is tied to a specific amount of gold and is redeemable for that specific amount of gold.2 The government’s ability to increase the money supply is then restrain ...
Powerpoint Presentation
... Keynes’ reasons individuals hold money • transactions motive (positively related to y) • precautionary motive (positively related to y) • speculative motive (negatively related to i) ...
... Keynes’ reasons individuals hold money • transactions motive (positively related to y) • precautionary motive (positively related to y) • speculative motive (negatively related to i) ...
Economic Survey
... a) using the maximum number of resources to produce goods and services. b) using resources in such a way as to maximize the production of goods and services. c) finding the most expensive, time-consuming way to produce a good or service. d) replacing old ways of producing goods and services with new ...
... a) using the maximum number of resources to produce goods and services. b) using resources in such a way as to maximize the production of goods and services. c) finding the most expensive, time-consuming way to produce a good or service. d) replacing old ways of producing goods and services with new ...
Module 17 Notes
... Module 17 Notes 2 effects that help explain the reason that the Aggregate Demand (AD) curve is down sloping. ...
... Module 17 Notes 2 effects that help explain the reason that the Aggregate Demand (AD) curve is down sloping. ...
Inflation
... – Excess demand bids up the prices of the limited output – Total spending pulls up prices – “too much money chasing too few goods” – Can be persistent ...
... – Excess demand bids up the prices of the limited output – Total spending pulls up prices – “too much money chasing too few goods” – Can be persistent ...
Unit 7 Unemployment and inflation Objectives Calculate the
... Periods of prosperity may be followed by a temporary decrease in aggregate demand (consumption, investment and exports). We refer to this as a business cycle. Sales may decrease during a recession and firms may have to reduce production. They will then reduce their demand for inputs, including labou ...
... Periods of prosperity may be followed by a temporary decrease in aggregate demand (consumption, investment and exports). We refer to this as a business cycle. Sales may decrease during a recession and firms may have to reduce production. They will then reduce their demand for inputs, including labou ...
Answer Key - Syracuse University
... is thus bigger than Y, inventories fall and Y rises. There would be a multiplier. By assuming no change in interest rates, there would be no direct effect on C, I or G from the debt reduction. (Note: There could be a portfolio effect. The supply of bonds decreases, households try to shift from money ...
... is thus bigger than Y, inventories fall and Y rises. There would be a multiplier. By assuming no change in interest rates, there would be no direct effect on C, I or G from the debt reduction. (Note: There could be a portfolio effect. The supply of bonds decreases, households try to shift from money ...
Chapter 16—Gaining from International Trade
... 133. Which of the following is the best explanation of how expansionary fiscal policy can crowd out net exports? a. Expansionary fiscal policy leads to high budget deficits. Foreigners become concerned about the stability of the United States and stop buying American goods as a result. b. When the g ...
... 133. Which of the following is the best explanation of how expansionary fiscal policy can crowd out net exports? a. Expansionary fiscal policy leads to high budget deficits. Foreigners become concerned about the stability of the United States and stop buying American goods as a result. b. When the g ...
Federal Reserve and Monetary Policy
... •Economists have often noticed that as an economy recovers from a recession, interest rates start to rise. ...
... •Economists have often noticed that as an economy recovers from a recession, interest rates start to rise. ...