Changes in savings rate population growth rate or rate of depreciation does not

Changes in savings rate population growth rate or

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Changes in savings rate, population growth rate, or rate of depreciation does not affect long- term growth rate of Y/L T is also called Multi-Factor Productivity; growing T allows Net I to continue growing and productivity to continue growing K/L can rise due to increase in T, increase in the savings rate, fall in depreciation rate The Structural (Standardized) Deficit: happens when a country posts a deficit even when the economy is operating at its full potential. A deficit will be posted no matter how the economy is functioning. Monetary Base: Currency in Circulation + Total Bank Reserves o Total Bank Reserves = $1,747.97 Put on notecard M1: Currency + Total Checkable Deposit + Travelers Checks (does not include savings deposits, small time deposits) With excess reserves: fewer loans, change in M1 will end up being smaller after an open market operation If the Standardized Deficit is larger than the actual government budget deficit, the GDP must be above potential GDP Change in loans at end of open market purchase will equal change in reserves/(rrr), then this answer (which is the change in deposits) x 1-rrr.
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