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Review questions

Review questions

Review questions. 1.Define the concepts of compounding and discounting . Use future values and present values to explain how these concepts are related.

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667 views • 57 slides
MONEY

MONEY

MONEY. What is Money? 3 Distinguishing Features of Money: .Medium Of exchange .Unit of Account .Store of Value. Medium of Exchange. Facilitates efficient economic transactions Advantage over Barter Economy: Double Coincidence of Wants Not Necessary

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Monetary Policy

Monetary Policy

Monetary Policy. Chapter 13. The Supply of Reserves. Banks lend more when the fed funds rate increases. Federal Funds Rate. Supply: banks. Banks increase lending as interest rates rise because it is more profitable. i o.

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Lecture 4

Lecture 4

Lecture 4. UNDERSTANDING INTEREST RATES (2). The behavior of interest rates. What determines the quantity demanded of an asset? Wealth (total resources owned) Expected return of one asset relative to alternative assets Risk (the degree of uncertainty associated with the return)

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The Money Market and Monetary Policy

The Money Market and Monetary Policy

The Money Market and Monetary Policy. Unit 4 Lesson 5 Activity 39-40 Goodman, Jean B. U.S. Naval Academy Advanced Placement Economics Teacher Resource Manual . National Council on Economic Education, New York, N.Y. Objectives.

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M a c r o e c o n o m i c s F r e e R e s p o n s e

M a c r o e c o n o m i c s F r e e R e s p o n s e

M a c r o e c o n o m i c s F r e e R e s p o n s e. 2007. Macro Free Response 2007. [Question 1 had 12 total points; Question 2 had 6 points; and Question 3 had 8 pts] 1. [3 pts] Assume that declining stock market prices in the U.S. cause many

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