FNCE101_Drozd_Final_Cheatsheet

Effects of changes in pvlr a rise in perceived

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: se. Effects of changes in PVLR • A rise in (perceived) present value of lifetime resources (PVLR) raises demand for goods and services, including imports, so net expor d line Unctsoecvered interest rate Exchange rates definitions Exocrhseaurnsgfeporr,st aoplteeusssell ddeefts icinptirotns(UIP) ia i y • T inc ea p cha es o im pe m t the om c e a to uy gn c nc he RNreancllyaeebbitfroreigngenctyr,eia( ees)ing b suppl f • •• RureMOxchaangeurcrreonditreaon te e)twyeoen domestic and sforeignand estment O o rxcha e a i ( Sale R ( inv viceversa) domeorc cursek- w ch rreal eisnveshange ) e xc r ( i nc – f Nere rst rfrrn igon d ood s i s v ets) ( P ort red iDecreaseeyr,nehifoutfoDiscounttgsorpantdaserravnidctey(eirm(picoUItihmtpc)asb)e tphurtchcaasend be purchased nsttNi uurmrbbeoinf duciogatehetee rate s r se R n a –m e go a a s e nom • Why wi$tnot oneciadomng yetairscbegoodisandUs.Services (expor, tt+s1 ) did h depre te duri es fore cris when . 1 nd 1 o Puonsmpainvenmnengoodtnaee(rettrvieicceUxpori+ty)PPP)ltiplier DecciithoneinsiigsgcreCndIfessmoesfrnIe st)(ioems Exf hand r t ent P daincreasebPea = t(P Co umpthonnsit geobtioom oaoePxpor s+d om )(einy i nRu c r wi a dom Required reserves wt UK Principles of money supply determination d n o m ,t Efor...
View Full Document

This test prep was uploaded on 02/16/2014 for the course FNCE 101 taught by Professor Kurmann during the Fall '09 term at UPenn.

Ask a homework question - tutors are online