Interest Rates Inflation Money Fiscal Policy Potpour ri Monetar y Policy Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Board This type of investment includes payments for additions to a nation s public and private capital stock Board How can one reduce risk in a portfolio of investments Board These are the two actors that make up demanders and suppliers in the loanable funds market respectively Board The two primary factors considered when making investment decisions Board This is an example of one type of policy that might increase the quantity of loanable funds but decrease interest rates in equilibrium Board Disregarding the increase in prices these are four of the six other costs of inflation Board Assuming velocity and GDP are close to fixed this theory claims that the money supply determines prices and inflation is related to the growth in money Board The Fisher effect claims this relationship exists between nominal interest rates and inflation Board These are two types of people that might benefit or are not worse off from higher inflation rates Board Considering the theory of rational expectations this might be a counter intuitive long run impact of a contractionary monetary policy on unemployment Board Failure to satisfy these functions of money explains why credit cards cannot be considered money Board Money demand considers these two uses consumers have for money Board This feature differentiates the various components of the money supply i e M1 versus M2 Board These are three costs drawbacks of using commodity over fiat money Board This is an explanation for how changes in the Federal Reserve reserve ratio should impact the supply of money in the economy Board This type of timing problem describes the period in which it takes to pass an economic stimulus package after the recession has begun Board These are two tools the government could use to implement a contractionary fiscal policy Board Under an expansionary fiscal policy this can be one counterproductive side effect of increased government spending or a reduction in taxes Board This argument explains why temporary tax cuts might not be as effective in shifting AD as theoretically predicted Board Under these conditions will the miracle of lower taxes and higher revenue occur Board This school of thought attributes business cycles economic fluctuations to shocks in real variables Board This is a central motivation for focusing on CPI inflation over a general price inflation Board This formula predicts which key economic statistic in an economy Board This is one argument against using government policy to mitigate the impact of macroeconomic fluctuations business cycles Board This type of macroeconomic shock led to inconsistencies in the predictions of the Phillips curve Board This formula estimates the additional shift in money supply because of a series of loaned and re deposited funds Board These are the primary three tools a Central Bank can use to implement monetary policy Board These are two reasons why a rule based Central bank might be favored over a discretion based bank Board These are two complications that might hinder the implementation of monetary policy Board This process explains how the discount rate can affect interest rates in the real economy Board Interest Rates Inflation Money Fiscal Policy Potpour ri Monetar y Policy Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Final Jeopardy Consider the following scenario and suggest what the Federal Reserve should do to close the GDP gap GDP Gap 100 mpc 75 Loanable fund demand 600 1000i Money demand 5000 20000i Old RR 1 Old deposits 300
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