Macroeconomics: Chapter 15

Macroeconomics: Chapter 15

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Chapter 15 – The Influence of Monetary Injection and Fiscal Policy on Aggregate Demand

This chapter discusses:

  • Theory of Liquidity Preference
  • The Money Market, Aggregate Demand Curve, and Equilibrium Interest Rate
  • A Monetary Injection in a Closed Economy
  • A Monetary Injection in an Open Economy
  • Flexible Exchange Rate
  • Fixed Exchange Rate
  • How Fiscal Policy Influences Aggregate Demand
  • Multiplier Effect
  • Marginal Propensity to Consume (MPC)
  • Marginal Propensity to Import (MPI)
  • Crowding-Out Effect on Investment
  • A Fiscal Expansion in an Open Economy with a Flexible Exchange Rate
  • Crowding-Out Effect on Net Exports
  • A Fiscal Expansion in an Open Economy with a Fixed Exchange Rate
  • The Coordination of Monetary and Fiscal Policy
  • Changes in Taxes
  • Automatic Stabilizers

 

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Macroeconomics: Chapter 14

Macroeconomics: Chapter 14

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Chapter 14 – Aggregate Demand and Aggregate Supply

This chapter discusses:

  • Recessions / Depression
  • Three Key Facts About Economic Fluctuations
  • The Model of Aggregate Demand and Aggregate Supply
  • Three Reasons Why the Aggregate Demand Curve is Downward Sloping
  • Why the Aggregate Demand Curve Might Shift
  • Why the Aggregate Supply Curve is Upward Sloping, and Sometimes Vertical
  • Why the Aggregate Supply Curve Might Shift
  • The Sticky-Wage, Sticky-Price, and Misperceptions Theories
  • John Maynard Keynes

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Macroeconomics: Chapter 12

Macroeconomics: Chapter 12

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Chapter 13 – Open-Economy Macroeconomics: Basic Concepts

This chapter discusses:

  • Closed and Open Economies
  • Factors that Influence Trade
  • Net Capital Outflow (NCO) and Variables that Influence It
  • The Equality of Net Exports and Net Capital Outflow (NX = NCO)
  • Saving, Investment, and their Relationship to the International Flows
  • The Prices for International Transactions: Real and Nominal Exchange Rates
  • Purchasing-Power Parity
    • Law of One Price
    • Arbitrage
  • Perfect Capital Mobility
    • Interest Rate Parity

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Macroeconomics: Chapter 11

Macroeconomics: Chapter 11

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Chapter 11 – Money Growth and Inflation

This chapter discusses:

  • Inflation, Deflation, and Hyperinflation
  • Quantity Theory of Money, David Hume, Milton Friedman
  • The Classical Theory of Inflation
  • The Levels of Prices and the Value of Money
  • Money Supply, Money Demand, and Monetary Equilibrium
  • The Effects of Monetary Injection
  • Nominal and Real Variables
  • Classical Dichotomy
  • Monetary Neutrality
  • Velocity and Quantity Equation
  • Inflation Tax
  • Fisher Effect
  • The Costs of Inflation
    • Shoeleather Costs
    • Menu Costs
    • Inflation-Induced Tax Distortions
    • Relative-Price Variability and Misallocation of Resources
    • Confusion and Inconvenience
    • Arbitrary Redistributions of Wealth

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Macroeconomics: Chapter 10

Macroeconomics: Chapter 10

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Chapter 10 – The Monetary System

This chapter discusses:

  • The Functions of Money
    • Medium of Exchange
    • Unit of Account
    • Store of Value
    • Liquidity
  • The Kinds of Money
    • Commodity Money
      • Intrinsic Value
    • Fiat Money
    • Money Stock
    • Currency
    • Demand Deposits
  • Bank of Canada
    • Central Bank
  • Functions of the Bank of Canada
    • Money Supply
    • Monetary Policy
    • Reserves
  • Fractional-Reserve Banking
    • Reserve Ratio
  • Money Multiplier
  • Bank Capital
    • Leverage, Leverage Ratio
  • Capital Requirements
  • Bank Rate, Overnight Rate
  • Open-Market Operations
  • Quantitative Easing
  • Foreign Exchange Market Operations
  • Sterilization
  • Reserve Requirements
  • Problems in Controlling the Money Supply

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Chapter 8 Macroeconomics

Chapter 8 Macroeconomics

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Chapter 8 – Saving, Investment, and the Financial System

This chapter discusses:

  • The Financial System
  • OSFI
  • Financial Markets
  • Bonds
  • Credit, Credit Risks
  • The Stock Market
  • Financial Intermediaries
  • Banks, Mutual Funds, Index Funds
  • Private & Public Savings
  • Budget Surplus, Deficit
  • Market for Loanable Funds
  • Three Policies that effect economy saving and investment
    • Saving Incentives
    • Investment Incentives
    • Government Budget Deficits and Surpluses
  • Crowding Out
  • Vicious Circle, Virtuous Circle

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