Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
8 Cards in this Set
- Front
- Back
|
M1
|
cash....travelers checks, checking account deposits, but NOT government money
|
|
|
M2
|
all of M1 plus savings accounts, and CD's and money market
|
|
|
Monetary Base
|
Fed Notes, Coins and bank reserve deposits
|
|
|
What is Discretionary Fiscal Policy
|
Discretionary fiscal policy refers to the federal government’s decisions regarding government spending and taxing.
|
|
|
Mccallum Rule
|
- New Monetarists Feedback rule
- Sets Money Supply Growth Rate at inflation plus 10 year mocing real GDP minus 4 year moving growth - Adjusts SLOWLY since based on money supply growth |
|
|
Taylor Rule
|
- New Keynesian feedback rule
- changes fed funds rate in response to : - Inflation - difference between actual and target inflation - Differences between real GDP and full employment GDP - it is FAST |
|
|
Demand-pull inflation can result from
|
increases in the money supply, increases in exports, and increases in government purchases.
|
|
|
Cost Push Inflation
|
increases in the money wage rate or the prices of other productive inputs would result in cost-push
|
