Economics > EXAM > Monetary Economics (ECS3701) Selected Examination Questions and suggested solutions 2023 (All)
Monetary Economics (ECS3701) Selected Examination Questions and suggested solutions 2023
Document Content and Description Below
motivations to want to hold money balances - --transactions demand -precautionary demand -asset demand -transactions demand - --holding money as a medium of exchange to make payments -the level ... varies directly with nominal GDP -precautionary demand - --holding money to meet unplanned expenditures and emergencies -asset demand - --holding money as a store of value instead of other assets such as certificates of deposit, corporate bonds, and stocks -the demand for money curve - --assume the amount of money demanded for transactions purposes is proportionate income -precautionary and asset demand are determined by the opportunity cost of holding money (the interest rate) -y axis label (demand for money curve) - -interest rate -x axis label (demand for money curve) - -quantity of money -how does the fed influence interest rates? - -the fed seeks to alter consumption, investment, and total aggregate expenditures by altering the rate of growth ... -tools as monetary policy actions used by the feds - --open market operations -discount rate changes -changes in the reserve ratio [Show More]
Last updated: 2 years ago
Preview 1 out of 2 pages
Buy this document to get the full access instantly
Instant Download Access after purchase
Buy NowInstant download
We Accept:
Reviews( 0 )
$2.00
Can't find what you want? Try our AI powered Search
Document information
Connected school, study & course
About the document
Uploaded On
Apr 03, 2023
Number of pages
2
Written in
Additional information
This document has been written for:
Uploaded
Apr 03, 2023
Downloads
0
Views
81
