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;
15 Cards in this Set
- Front
- Back
|
Velocity of money |
V=(PxY)/M |
|
|
Equation of Exchange |
MV=PY |
|
|
Quantity theory of money |
Back (Definition) |
|
|
Price Level |
Back (Definition) |
|
|
Quantity theory and inflation |
Back (Definition) |
|
|
Liquidity preference theory: 3 motives |
Transactions Precautionary Speculative |
|
|
Theory of portfolio choice |
+1. Wealth +2. Expected returns... - 3. Risk +4. Liquidity |
|
|
Liquidity trap? |
when conventional monetary policy has no direct effect on aggregate spending because a change in the money supply has no effect on interest rates... (Pg. 492) |
|
|
Aggregate Demand |
Total amount of output demanded in the economy |
|
|
Yad |
|
|
|
Consumption function |
Back (Definition) |
|
|
Investment spending |
Back (Definition) |
|
|
Net export function |
Back (Definition) |
|
|
Government purchases and Taxes |
Back (Definition) |
|
|
Total equation for Y (IS Curve) |
|
