increase money supply
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Buy bonds
currency, demand deposits, traveler's check, and other checkable deposits
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M1
the interest rate on loans the Fed makes to banks to influence the amount of reserves
banks borrow
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Discount Rate
the fraction of extra income that households consume rather than save
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MPC
the normal rate of unemployment around which the actual unemployment rate
fluctuates
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Natural Rate of Unemployment
used as components or ingredients in the production of other goods
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Intermediate Goods
The rate at which money changes at hand
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, velocity
the additional shifts in AD that result when fiscal policy increases income and thereby
increases consume spending
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The Multiplier Effect
periods of falling real incomes and rising unemployment
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Recession
the portion of national income that is not used for consumption or government
purchases
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National Saving
a theory of exchange rates whereby a unit of any currency should be able to buy the
same quantity of goods in all countries
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Buy bonds
currency, demand deposits, traveler's check, and other checkable deposits
Give this one a try later!
M1
the interest rate on loans the Fed makes to banks to influence the amount of reserves
banks borrow
,Give this one a try later!
Discount Rate
the fraction of extra income that households consume rather than save
Give this one a try later!
MPC
the normal rate of unemployment around which the actual unemployment rate
fluctuates
Give this one a try later!
Natural Rate of Unemployment
used as components or ingredients in the production of other goods
Give this one a try later!
Intermediate Goods
The rate at which money changes at hand
Give this one a try later!
, velocity
the additional shifts in AD that result when fiscal policy increases income and thereby
increases consume spending
Give this one a try later!
The Multiplier Effect
periods of falling real incomes and rising unemployment
Give this one a try later!
Recession
the portion of national income that is not used for consumption or government
purchases
Give this one a try later!
National Saving
a theory of exchange rates whereby a unit of any currency should be able to buy the
same quantity of goods in all countries
