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3. The Great Depression
3. The Great Depression

module4revieweconomics
module4revieweconomics

... regulations Participates in Federal Open Market Committee Communicates with leaders in other parts of government. It consists of seven members, each with a 14-year term. Is appointed by the President of the United States and confirmed by the Senate. Analyzes economic data such as interest rates and ...
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... a. Monetary policy makers cannot act without congressional approval. b. The primary effects of the policy change will not be felt for 6 to 15 months into the future. c. The Board of Governors of the Federal Reserve System does not meet very often. d. Monetary policy affects only the general level of ...
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... checkable deposit, the: a. Paris First National Bank will get $800 in new reserves. b. Paris First National Bank will not get $800 in new reserves. c. assets of the Paris First National Bank will increase by $800. d. assets of the Paris First National Bank will decease by $88. e. liabilities of the ...
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EC 102 Fall 2007 – Homework #5
EC 102 Fall 2007 – Homework #5

... in the denominator of the multiplier and those which aren’t (the variables that the multiplier is multiplying)? Is there any intuition which may explain this? ...
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Macroeconomic Conflict and Consensus

... Awareness of business cycle, but no consensus on how to respond to it ...
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... without a tax cut. Nevertheless, a tax cut is desirable for several reasons regardless of its effects on final demand. First, our tax system is in serious need of revision for the purpose of increasing incentives and thereby increasing the capacity of our economy to grow. Many tax laws were adopted ...
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... investing. The model explains the decisions made by investors when it comes to investments with the amount of money available and the interest they will receive. Equilibrium is achieved when the amount invested equals the amount available to invest. Despite many shortcomings, the IS-LM model has bee ...
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STUDY QUESTIONS FOR EXAM 1

... 13. Define fiscal policy. If c1 = .75 and G decreases by $100, what happens to equilibrium Y? Illustrate with the Keynesian cross. If T decreases by $100, what is the effect of just this change in taxes? On a separate graph show this impact. Why is the impact of G bigger? Nowdetermine the impact of ...
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... exams. There will be no early exams or e-exams. If you miss an exam, you have to make sure that your excuse is documented and approved by the University. If you have a valid reason with required documentation, such as a doctor’s report approved by the University, you will be allowed to take the make ...
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... • The monetary policy is the act of regulating the money supply by the Federal Reserve Board of Governors. One of the main responsibilities of the Federal Reserve System is to regulate the money supply so as to keep production, prices, and employment stable. • The "Fed" has three tools to manipulate ...
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... a. (1-2 points) Targeting the money supply will lead to fluctuations in the interest rate because of fluctuations in money demand. b. (1-2 points) On the other hand, targeting the interest rates will lead to fluctuations in money supply, again due to fluctuations in money demand. c. (1-2 points) The ...
Social Studies 30 - Sundre High School
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... temporary and the economy would recover. As the crisis worsened and unemployment hit close to 30%, people began to demand government intervention. It was clear that unrestricted markets had failed. ...
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... and thereby Aggregate Demand. In an open economy, higher interest rates attract capital from abroad. As foreigners buy more dollars to buy U.S. bonds and other financial assets, the dollar appreciates. In turn, the appreciation of the dollar causes net exports to fall. Thus, as a result of increased ...
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CHAPTER 15
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... 10. Critics maintain that active changes in the money supply by the Fed may destabilize the economy. They note that the Fed does not have up-to-the-minute, reliable information about the state of the economy and prices. Also, the Fed has a less-than-perfect understanding of the way the economy works ...
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Helicopter money

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