{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Review-Exam 1 - Economics 121 George Washington University...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics 121 Pamela Labadie George Washington University Spring 2010 Review - Exam 1 The exam covers Chapters 1-6 and chapter 22, excluding pages 573–577 “Further Develop- ments in the Keynesian Approach.” Chapter 1 1. Basic national income accounting - lecture notes 2. Balance of payments - capital financial account and current account CA + KF A = 0 3. Loanable funds market (or the credit market) S g + S p ( r e , y ) = I ( r e ) + CA. (a) Closed economy: impact of increase in I ( r ), decrease S g , increase in y on expected real rate of interest (b) Open economy: impact of changes in world interest rate r e w on CA, I ( r e ) , S p ( r e , y ). Impact of decrease S g on CA and KFA. 4. Crowding out by government deficit spending in a closed economy versus fiscal multiplier 5. Debt security (such as a bond) 6. Equity - separation of ownership and management, limited liability and residual claimant 7. Business cycle terms: (see lecture notes) (a) amplitude (b) duration (c) peak or trough (d) expansion and recession (e) Procyclical, countercyclical and acyclical (f) Leading indicator, coincident indicator, lagging indicator 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
8. Fisher equation (Note titled “Real and Nominal Interest Rates”): redistribution between borrowers and lenders when there is unanticipated inflation 9. Behavior of interest rates over the business cycle (procyclical) 10. Twin deficits Chapter 2 1. Role of financial intermediaries 2. Direct versus indirect finance 3. Primary versus secondary markets 4. Dealer versus a broker 5. OTC versus an organized exchanged 6. Money market instruments -maturity and basic categories
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}