Основы экономики. Земскова Л.П. - 17 стр.

UptoLike

ВУЗ: 

ВГУ | Воронеж

Составители: 

Рубрика: 

17
Discount rate
Money multiplier
High-powered money (monetary base)
Federal Deposit Insurance Corporation (FDIC)
Gold standard
Money targets
Constant money growth rule
PROBLEMS
1. If the money multiplier suddenly falls because people become suspicious
about the solvency of banks, is there anything the Fed can do to prevent the
money stock from falling?
2. Discuss why in a fiduciary money system there is no limit on the amount of
money the central bank can create. Then discuss in what way an ideal gold
standard could make the economy perform better than the Fed might be able
to.
3. Explain in what sense banks increase the money supply. Do this by showing
how the money supply is affected when a person decides to deposit in a bank
some currency that previously was hidden under the mattress.
4. Is a financial panic possible in a fiat money system?
LECTURE 8. THE BUDGET, FISCAL POLICY
AND AGGREGATE DEMAND
1. Government enters the circular flow by taxing income and making transfers,
affecting the amount of income available for consumption and saving,
purchasing goods and services.
2. The government budget deficit is the excess of spending over taxes. When
taxes exceed spending or outlays, there is a budget surplus.
3. Taxes reduce the level of disposable income at each level of income or
output. They therefore reduce consumption spending at each income level
and thus reduce aggregate demand and output. An increase in taxes reduces
income and output and reduces the budget deficit.
4. An increase in government purchases of goods and services increases
aggregate demand and output and increases the budget deficit.
5. Proportional taxes lower the marginal propensity to consume out of national
income, because households get only a fraction of each dollar of national
income for their disposable income. Proportional taxes therefore lower the
multiplier.
6. In equilibrium, and ignoring net exports, savings minus investment is equal
to the government budget deficit. This relationship can be thought of in terms
of borrowing and lending. Households save and lend. The borrowers are

Страницы