chap22 - Macroeconomic Do Thi Thuy Phuong Outline chap 22...

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Macroeconomic Do Thi Thuy Phuong Outline chap 22 INTRODUCE This chapter introduces the quantity theory of money to explain one of the Ten Principles of Economics from Chapter 1: Prices rise when Government prints too much money Most economist believe the quantity theory is a good explanation of long run behavior of inflation.Nowadays Vn is facing with high rate of inflation. How much are they ? 28% The first insight of inflation is more about the value of money than about the value of Goods. What Determines the value of Money : LIKE MANY IN ECONOMICS : S+ MONEY SUPPLY For us. Our Parent are suppliers for money. In fact , Federal controls MS and sets it at some fixed amount Money Demand quantity of money demanded depend on interest rate that a person could earn by using the money to buy an interest bearing bond. b/c it is the medium of exchange. How much money do you put in your wallet . It depends on the price of things you want to buy. AND THE Higher prices are, the more money requires. And more money you need to put in your
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This note was uploaded on 06/20/2011 for the course ECON 123 taught by Professor Mrews during the Spring '11 term at Korea Advanced Institute of Science and Technology.

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chap22 - Macroeconomic Do Thi Thuy Phuong Outline chap 22...

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