Review - Leon County Schools
... 1. Expansionary Fiscal Policy a. Implemented when the government is trying to “expand” the economy or make it grow in other words. Done through: i. cutting taxes ii. increasing spending iii. known as “deficit spending” referred as that because the government is spending more than they are bringing ...
... 1. Expansionary Fiscal Policy a. Implemented when the government is trying to “expand” the economy or make it grow in other words. Done through: i. cutting taxes ii. increasing spending iii. known as “deficit spending” referred as that because the government is spending more than they are bringing ...
SOLUTION EXAM 06/07/04
... 1. a) Disagree. If an increase in the price of butter leads, by demand law, to an increase in the quantity demanded of margarine that means that a fall in the demand of butter will provoke an increase in the demand of margarine, then margarine and butter are substitutes b) Agree. The marginal cost c ...
... 1. a) Disagree. If an increase in the price of butter leads, by demand law, to an increase in the quantity demanded of margarine that means that a fall in the demand of butter will provoke an increase in the demand of margarine, then margarine and butter are substitutes b) Agree. The marginal cost c ...
chapter 25
... borrow money to make the purchase. c. Since people often borrow money to purchase consumer durables, an increase in the interest rate raises the monthly payments on these items. Consequently, consumers purchase fewer durables when interest rates rise. ...
... borrow money to make the purchase. c. Since people often borrow money to purchase consumer durables, an increase in the interest rate raises the monthly payments on these items. Consequently, consumers purchase fewer durables when interest rates rise. ...
Principles of Economics, Case and Fair,9e
... FIGURE 18.1 The Velocity of Money, 1960 I–2007 IV Velocity has not been constant over the period from 1960 to 2007. There is a long-term trend—velocity has been rising. There are also fluctuations, some of them quite large. ...
... FIGURE 18.1 The Velocity of Money, 1960 I–2007 IV Velocity has not been constant over the period from 1960 to 2007. There is a long-term trend—velocity has been rising. There are also fluctuations, some of them quite large. ...
QUIZ 7: Macro – Winter 2011 Name
... In the long run the increase in nominal money supply (a monetary expansion) is reflected entirely in a proportional increase in the price level, namely it has no effect on output and the interest rate. Economists refer to the absence of long-run effects of money on output and the interest rate by sa ...
... In the long run the increase in nominal money supply (a monetary expansion) is reflected entirely in a proportional increase in the price level, namely it has no effect on output and the interest rate. Economists refer to the absence of long-run effects of money on output and the interest rate by sa ...
Notes for Chapter 16 - FIU Faculty Websites
... It requires Congressional and Presidential intervention. Discretionary fiscal policy entails only new tax and spending decisions. The yearly changes in the tax code and spending create the discretionary income and can create a larger surplus or deficits. Fiscal year is the 12 month period used for a ...
... It requires Congressional and Presidential intervention. Discretionary fiscal policy entails only new tax and spending decisions. The yearly changes in the tax code and spending create the discretionary income and can create a larger surplus or deficits. Fiscal year is the 12 month period used for a ...
financialization and structural imbalances in the global economy
... the Federal Reserve Board is a government body, the process of money creation is controlled by the 12 Federal Reserve Banks, which are privately owned. The shareholders of the Federal Reserve banks (with the New York Federal Reserve Bank playing a dominant role) are among America's most powerful fin ...
... the Federal Reserve Board is a government body, the process of money creation is controlled by the 12 Federal Reserve Banks, which are privately owned. The shareholders of the Federal Reserve banks (with the New York Federal Reserve Bank playing a dominant role) are among America's most powerful fin ...
Money, Output, and Prices
... Money demand is equal to a fraction (k is between zero and one) of real income. That fraction depends on interest rates (-) and transaction costs ...
... Money demand is equal to a fraction (k is between zero and one) of real income. That fraction depends on interest rates (-) and transaction costs ...
Three Items for the Macroeconomic Agenda
... agonizing questions of himself: 'What does it all mean?' (signal extraction) or `I know I have optimized, but - is that all there is?' (policy ineffectiveness). ...
... agonizing questions of himself: 'What does it all mean?' (signal extraction) or `I know I have optimized, but - is that all there is?' (policy ineffectiveness). ...
Document
... What are some common intermediate targets that the Fed has used to guide p olicy in recent years? Give two criteria for intermediate targets. The Fed has used the M2 and DNFD aggregates as recent common intermediate targets. In even more recent years, the Fed has used the level of interest rates as ...
... What are some common intermediate targets that the Fed has used to guide p olicy in recent years? Give two criteria for intermediate targets. The Fed has used the M2 and DNFD aggregates as recent common intermediate targets. In even more recent years, the Fed has used the level of interest rates as ...
Monetary Policy - s3.amazonaws.com
... C.The Term Auction Facility 1. This tool was introduced in December 2007 in response to the financial crisis. 2. Under the term auction facility, the Fed holds two auctions each month, and banks secretly bid for the right to borrow reserves for 28 or 84 days. The bids are ranked from highest to low ...
... C.The Term Auction Facility 1. This tool was introduced in December 2007 in response to the financial crisis. 2. Under the term auction facility, the Fed holds two auctions each month, and banks secretly bid for the right to borrow reserves for 28 or 84 days. The bids are ranked from highest to low ...
Intermediate Macroeconomics – Lecture Note #4
... This is a pretty straightforward story. Money Demand = Y × L(i). So, as output (Y) rises putting downward pressure on interest rates in the good market, Money Demand also rises putting upward pressure on interest rates. You can think about this just like prices in a normal goods market. As prices ri ...
... This is a pretty straightforward story. Money Demand = Y × L(i). So, as output (Y) rises putting downward pressure on interest rates in the good market, Money Demand also rises putting upward pressure on interest rates. You can think about this just like prices in a normal goods market. As prices ri ...
Title: Inflation Activity - Maryland Council on Economic Education
... 1. Why doesn’t the government just print more money and give everyone some? 2. What would be likely to happen if the government (or Bill Gates) gave every family in the United States a million dollars? 3. What factors (other than monetary or fiscal policy action) could affect the level of inflation ...
... 1. Why doesn’t the government just print more money and give everyone some? 2. What would be likely to happen if the government (or Bill Gates) gave every family in the United States a million dollars? 3. What factors (other than monetary or fiscal policy action) could affect the level of inflation ...
Macrohonours Lecture 10 - Lecture Notes
... • In the US, household debt rose by 8 percentage points between 1988 and 1998 and by 29 percentage points between 1998 and 2008, over the same periods financial sector debt rose by 30 percentage points and 48 percentage points) • In Spain, households debt rose form 44% of GDP (1999) to 69% of GDP (2 ...
... • In the US, household debt rose by 8 percentage points between 1988 and 1998 and by 29 percentage points between 1998 and 2008, over the same periods financial sector debt rose by 30 percentage points and 48 percentage points) • In Spain, households debt rose form 44% of GDP (1999) to 69% of GDP (2 ...
Economics Exam Review: Page numbers at the end of the
... 32. Which of the following is the best example of a public good? 62 a. highway system b. shopping mall c. country club d. movie theater 33. Why does an economist create a market demand schedule? 89 a. to learn what demands the market will make under unusual conditions b. to have an idea of how a mar ...
... 32. Which of the following is the best example of a public good? 62 a. highway system b. shopping mall c. country club d. movie theater 33. Why does an economist create a market demand schedule? 89 a. to learn what demands the market will make under unusual conditions b. to have an idea of how a mar ...
Budget Documents
... How much money will go to health, education, pay, pensions, poverty alleviation, interests payments, defence etc., ? ...
... How much money will go to health, education, pay, pensions, poverty alleviation, interests payments, defence etc., ? ...
IS-LM Model
... more effective than tax cuts because with cuts, people retain some of the money (determined by MPS) whereas money from G goes straight into Y Balanced Budget? if you have increased taxes to cover increased government purchases (i.e., dG = dT), there is no change in Y... 1/(1 - C ') - C '/(1 - C ') = ...
... more effective than tax cuts because with cuts, people retain some of the money (determined by MPS) whereas money from G goes straight into Y Balanced Budget? if you have increased taxes to cover increased government purchases (i.e., dG = dT), there is no change in Y... 1/(1 - C ') - C '/(1 - C ') = ...
17 - Seattle Central College
... • When the government raises revenue by printing money (Zimbawe), it is said to levy an inflation tax. • An inflation tax is like a tax on everyone who holds money (dollars in your wallet less valuable). • The inflation ends when the government institutes fiscal reforms such as cuts in government sp ...
... • When the government raises revenue by printing money (Zimbawe), it is said to levy an inflation tax. • An inflation tax is like a tax on everyone who holds money (dollars in your wallet less valuable). • The inflation ends when the government institutes fiscal reforms such as cuts in government sp ...
syllabus2
... supply of money, Federal Reserve system, money creation by banking system, money multiplier, monetary policy (tight and easy), loanable funds market Graphs: Money market Loanable funds market Monetary policy money market transition mechanism ...
... supply of money, Federal Reserve system, money creation by banking system, money multiplier, monetary policy (tight and easy), loanable funds market Graphs: Money market Loanable funds market Monetary policy money market transition mechanism ...
Lecture 2
... The value of money today, vt , depends on what people believe the value of money tomorrow, vt+1 , will be, which in turn depends on vt+2 , etc... A reasonable assumption is that these beliefs are the same for every generation. This means every generation acts in the same way, choosing c1,t = c1 and ...
... The value of money today, vt , depends on what people believe the value of money tomorrow, vt+1 , will be, which in turn depends on vt+2 , etc... A reasonable assumption is that these beliefs are the same for every generation. This means every generation acts in the same way, choosing c1,t = c1 and ...
