Econ FEB - *CLASS BEFORE EXAM Test is 40 Multiple Choice...

Info icon This preview shows page 1. Sign up to view the full content.

February 11, 2008. **CLASS BEFORE EXAM** Test is 40 Multiple Choice questions. Gresham’s law: bad money replaces good money. e.g. When actual gold coins (good form of $) is compared to a certificate given by government (bad form of $), then only certificates will be present and gold coins will disappear. Bad form/good form of money are in a relative sense of the market. Public confidence: Legal tender (all currency, sometimes excluding pennies & small change). Responsibility of monetary policy: policy to keep money supply growth at a reasonable rate. o Assures us that the value of our money will not significantly decline (stability). o
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Monetary policy in modern times can print higher money supply & gov’t can earn profit by doing so. This gov’t profit is called, or “SEIGNEORAGE” (pron. See-nee-orage). o Govt’s that have been too greedy of seigneorage have paid a significant ‘price’ for it. E.g. Germany, Turkey,etc. • Modern money supply is called Credit Money or fiduciary money. Topics on Test 1: Definitions: Economics (micro & macro, normative & positive), factors of production, economic system, communism, capitalism, circular flow, opportunity cost, economic hypothesis, PPC, law of demand & its validity, law of supply. 1 & 2 of both chapter 3 of micro....
View Full Document

  • Spring '08
  • KULKARNI
  • Economics, Bad form/good form

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern