This article is about how the president-elect is making some bad and pretty uniformed
decisions when it comes to trade. From the president-elects perspective, reversing globalization
seems to be a smooth proce
Chapter 6 summary
Observation makes you a better teacher, lessens your bias and makes you more objective.
Beginner observers should: Practice intensive waiting, become part scientist (more facts, less
inferences), engage in slowing down (A
Determinates of Supply and Demand
Determinates of Supply: (Based on the perspective of the producer)
Increase in Supply:
Number of Suppliers: Increases
Price of inputs: Decreases
Suppliers expectations: Optimistic
Taxes: Decrease and/or subsidies: Increas
Supply and Demand How prices are set
Law of Demand - When price falls, quantity demand increases
Law of Supply - When prices rise, quantity supplied increases.
Says Law - Supply creates its own demand
Demand: Price and Quantity have an inverse relationshi
Deposit Expansion Multiplier and Reserve Ratio
Deposit Expansion Multiplier: Describes the amount of money created in a banks money supply
which is created by lending money that is in excess of its required reserve ratio.
Reserve Ratio: Is a centra