Menu_08_Mar_06 - a. M1 2. Money as a Store of Value a....

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TODAY’S MENU: Wednesday 08 March 2006 I. BUSINESS A. Practice Problems 1. Chapter 10: 1, 4, 5, 7 B. Revised Q4 productivity C. Second exam: Next Friday (17 March) II. SUBSTANCE A. Money: the basics 1. Definitions 2. Five functions a. Means of payment i. Medium of exchange ii. Means of unilateral payment b. Unit of account c. Standard of value d. Store of value e. Standard of deferred payment B. Money: How (and why) is it measured? 1. Money as a Medium of Exchange
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Unformatted text preview: a. M1 2. Money as a Store of Value a. Concept of Liquidity b. M2 3. Importance of a “good” measure of the money supply C. Money: How do banks create it? 1. Model: Money Supply = MB x money multiplier a. MB = Monetary Base = bank reserves + currency in circulation 2. Multiple Deposit Creation: A fairy tale III: NEXT TIME A. Continue Chapter 10: “Money, Prices, and the Fed”...
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This note was uploaded on 07/31/2008 for the course ECON 2035 taught by Professor Stahl during the Spring '08 term at LSU.

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