Macro notes - Chapter 8, 10-15 (70 questions, 45% of final...

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Chapter 8, 10-15 (70 questions, 45% of final grade) Underlines=needs to understand Chapter 13 The budget balance equation o T – Tax o G – Government spending o Tr- government transfer Surplus or deficit Expansionary Contractionary If budget deficit occurs for a long time, public debt increases Govt Spends more money in market, more in debt b/w borrows from farmers market Stock is not considered money!!!! Ch14 questions 1. For each of the following transactions, what is the initial effect ( increase or decrease) on m1? Or m2? a. You sell a few shares of stock & put the proceeds into your savings account M2 a.i. (m2 doesn’t include savings account. If you put it into m2, m1 doesn’t change, and m2 increases) b. You sell a few shares of stock & put the proceeds into your checking account b.i. c. You transfer money from your savings to your checkings c.i. (m2 stays the same… savings decrease,checkings increase… because
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This note was uploaded on 12/07/2011 for the course ECON 2105 taught by Professor Staff during the Fall '08 term at Georgia State University, Atlanta.

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Macro notes - Chapter 8, 10-15 (70 questions, 45% of final...

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