Macro Economics Final

Macro Economics Final - Term Definition Goals of Monetary...

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Term: Goals of Monetary Policy Definition: 1.) Price Stability 2.) High Employment 3.) Stability of Financial Markets 4.) Economic Growth Term: Monetary policy targets Definition: 1.) intrest rate 2.) money supply Term: Shifts in Money Demand Definition: 1.) Shift in Real GDP 2.) Shifts in Price level Term: Loan Market Definition: deals with long term interest rate Term: Taylor Rule Definition: Federal Funds Rate= Current Inflation rate + Real Equilibrium Federal Funds Rate + .5(Inflation Gap) + .5(Output Gap)
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Term: Functions of Money Definition: 1.) Medium of Exchange 2.) A unit of account 3.) A store of value 4.) A standard of deferred payment Term: M1 Definition: Currency Checking accounts Traveler's checks Term: M2 Definition: All components included in M1 Saving Accounts Small-denominaiton time deposits (CDs) Money Market deposit accounts in banks Non institutional money market funds shares Term: Simple Deposit Multiplier Definition: 1/ RR
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Term: Monetary tools for money supply Definition: Open market operations Discount policy
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