Assets are things that are useful or things that have value. T or F. - -True -One of the most important prices determined in financial markets is the __________________ rate. - -interest -When a coffee shop lists a tall coffee on its menu at $2.95, the coffee shop is using money as a - -unit of a...
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Discount Rate - -The interest rate financial institutions pay to the Federal Reserve to borrow reserves -Federal Open Market Committee(FOMC) - -A policy-making group within the Federal Reserve System that directs the open market operations of the system -Federal Reserve System - -The Central B...
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Add to cartDiscount Rate - -The interest rate financial institutions pay to the Federal Reserve to borrow reserves -Federal Open Market Committee(FOMC) - -A policy-making group within the Federal Reserve System that directs the open market operations of the system -Federal Reserve System - -The Central B...
Fed can stimulate the economy by... - -creating a loose-money policy and engages in: (increasing level of spending) 1.) buying government securities 2.) lowering the discount rate 3.) lowering the reserve requirement -The Fed can constrain economic activity when... (correcting high inflation...
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Add to cartFed can stimulate the economy by... - -creating a loose-money policy and engages in: (increasing level of spending) 1.) buying government securities 2.) lowering the discount rate 3.) lowering the reserve requirement -The Fed can constrain economic activity when... (correcting high inflation...
1960s-1980s The Great ___________? - -Inflation -1980s-2007 The Great ___________? - -Moderation -2007-2010 The Great _____________? - -Recession -Dual Mandate Two Elements - -Price Stability and Maximum Employment -What is Monetary Policy? - -actions undertaken by a central bank to infl...
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Add to cart1960s-1980s The Great ___________? - -Inflation -1980s-2007 The Great ___________? - -Moderation -2007-2010 The Great _____________? - -Recession -Dual Mandate Two Elements - -Price Stability and Maximum Employment -What is Monetary Policy? - -actions undertaken by a central bank to infl...
Monetary theory - -Explored the effect of the money supply on the economy's price level -Monetary Policy - -The FED's control over the money supply -Stock - -An amount measured at a point in time -Income - -An amount measured per period of time -Demand for money - -A relationship betwe...
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Add to cartMonetary theory - -Explored the effect of the money supply on the economy's price level -Monetary Policy - -The FED's control over the money supply -Stock - -An amount measured at a point in time -Income - -An amount measured per period of time -Demand for money - -A relationship betwe...
15-1: Explain how the demand and supply of money determine the market interest rate - --The opportunity cost of holding money is the higher interest forgone by not holding other financial assets instead. -Along a given money demand curve, the quantity of money demanded relates inversely to the inte...
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Add to cart15-1: Explain how the demand and supply of money determine the market interest rate - --The opportunity cost of holding money is the higher interest forgone by not holding other financial assets instead. -Along a given money demand curve, the quantity of money demanded relates inversely to the inte...
What determines aggregate prices and output? - -Aggregate demand and supply -What determines interest rates in the short-run? - -The Fed controls interest rate -How does fiscal policy affect the economy (Arrow) - -G up -> D up -> p,y up T up -> Y-T down -> C down -> D down ->...
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Add to cartWhat determines aggregate prices and output? - -Aggregate demand and supply -What determines interest rates in the short-run? - -The Fed controls interest rate -How does fiscal policy affect the economy (Arrow) - -G up -> D up -> p,y up T up -> Y-T down -> C down -> D down ->...
demand for money - -The relationship between the interest rate and how much money people choose to hold -more - -more the goods and services exchanged the _____ the money demanded -greater - -the demand for money is ____ when price level is high -earns no interest - -disadvantage of money ...
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Add to cartdemand for money - -The relationship between the interest rate and how much money people choose to hold -more - -more the goods and services exchanged the _____ the money demanded -greater - -the demand for money is ____ when price level is high -earns no interest - -disadvantage of money ...
Monetary theory - -Explores the effect of money supply -Monetary policy - -The fed's control over money supply -Stock - -Amount measured at a point in time -Income - -Is a flow; amount measured at a period in time -Demand for money - -Relationship between the interest rate -Interest ...
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Add to cartMonetary theory - -Explores the effect of money supply -Monetary policy - -The fed's control over money supply -Stock - -Amount measured at a point in time -Income - -Is a flow; amount measured at a period in time -Demand for money - -Relationship between the interest rate -Interest ...
Facts that theory of term and structure of interest rates must explain - -1- interest rates on bonds of different maturities move together over time 2- When short term interest are low, yield curve have an upward slope. When short term interest are high, yield curve have an downward slope. 3-...
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Add to cartFacts that theory of term and structure of interest rates must explain - -1- interest rates on bonds of different maturities move together over time 2- When short term interest are low, yield curve have an upward slope. When short term interest are high, yield curve have an downward slope. 3-...
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