International Business Final

Front 1

Velocity

Back 1

remains constant in short term,but changes overtime

Front 2

If you increase the money suppley.. then

Back 2

you will increase inflation

Front 3

What curve is vertical?

Back 3

Long run supply curve

Front 4

What is tail number?

Back 4

N1307H

Front 5

How is money created?

Back 5

When banks make loans

Front 6

Nominal interest rate

Back 6

Price of money. (real interest rate+inflation)

Front 7

Capital account

Back 7

cummulative acount (year after year)

Front 8

MPM

Back 8

Marginal propensity to impact

Front 9

MPC

Back 9

Marginal propensity to consume

Front 10

If interests rate decreases in US

Back 10

investments are less attractive and foreign people will be les willing to invest and leave money

Front 11

Weakening the dollar is..

Back 11

bad for importing but good for exporting

Front 12

Where does most of federal budget go?

Back 12

85% to debt services, defense and entitlement.

Front 13

How long can Bill Gates fund National debt before he goes broke?

Back 13

62 hours

Front 14

Aggregate demand=

Back 14

Consumption + Income

Front 15

Where is aggregate demand equilibrium?

Back 15

Where Income=expenditures

Front 16

MV=OP

Back 16

money supply*Velocity of Money= Output * Price level

Front 17

Expenditure multiplier

Back 17

1/1-MPC

Front 18

Tax multiplier

Back 18

ChangeinTax(-MPC/(1-MPC)

Front 19

Change in Aggregate Demand

Back 19

(1/1-MPC)(original investment change)

Front 20

Keynesian macro model is focused on?

Back 20

focus on short run

Front 21

Keynesian model is price..

Back 21

inflexibile

Front 22

What is Keynesian model equilibrium

Back 22

Y=C+I+G

Front 23

The slope of the aggregate demand curve of the keynesian model is NOT affected by..

Back 23

level of investment

Front 24

Slope of aggregate demand curve of keynesian model =

Back 24

Marginal propensity to consume

Front 25

In Keynes model, if gov'nt spending was a positive function of income then ..

Back 25

The vertical intercept of AD=I+G-a
_Slope of AD would be greater than MPC

Front 26

A keynesian analytical approach is most appropriate when

Back 26

There is substantial unemployment

Front 27

Opportunity cost

Back 27

is the interest rate, and determind by inflation rate

Front 28

A monetarist is most likely to recommend that the money supply be

Back 28

managed so it grows at the same rate as any growth in real output

Front 29

To say that money is a store of value menas..

Back 29

it is a way of saving purchasing power to be used when needed

Front 30

Neo-classical and monetarist economists believe..

Back 30

THat the macro environment is largely self correcting

Front 31

Actual injections or withdrawals by the FED are decided by?

Back 31

the federal open market committee

Front 32

Given the monetarist indentity of MV=OP and assuming V is constant and 0 is growing at 3% per year..

Back 32

either M is growing or p is falling

Front 33

If RRR is .10 and the fed injects $50 million into money supply. How much money will be created through the loaning of excess reserves?

Back 33

$450 million

Front 34

If countries A and B produce 2 goods, boxes and baseballsand country A has comparitive advantage in production of baseballs.. then country B ..

Back 34

must have comparative advantage in boxes

Front 35

When we draw a production possibility frontier that is linear, we are reflecting that..

Back 35

-All inputs can be used in the production of either goods.
-the trade off between 2 goods is constant

Front 36

Economists oppose quotas because..

Back 36

They potentially allow inefficient foreign producers to survive in market

Front 37

Quotas _____ prices ______equilibrium market quantities; Tarrifs_____prices and _____quantities

Back 37

raise, lower;raise,lower

Front 38

MPC=.8 MPI=.3 If gov'nt increase aggregate demand by $100 million through in crease in purchases, a keynesian economist would expet equilibrium to increase by

Back 38

$200 million

Front 39

An economist will define the exchange rate between 2 currencies as the..

Back 39

amount of one currenct that must be paid in order to obtain one unit of another currency

Front 40

typical reasons for increasing ones demand for a specific foreign currency.

Back 40

-newly planned travel to country in question
-a desire to purchase more imports from country in quesiton
-anticipated increases in the foreign countrys bond yield

Front 41

If the exchange rate between teh UK and Japan change f1 being equivalent to 100 yen to f1 being equivalent to 150 yen. then ceretis paribus, the price of uk good in japan will

Back 41

increase