Econ 101 at Universität Giessen

Flashcards and summaries for Econ 101 at the Universität Giessen

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If aggregate demand shifts left, then in the short run

Exemplary flashcards for Econ 101 at the Universität Giessen on StudySmarter:

According to liquidity preference theory, the money-supply curve would shift if the Fed

Exemplary flashcards for Econ 101 at the Universität Giessen on StudySmarter:

Which of the following is not a determinant   of the long-run level of real GDP?
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Exemplary flashcards for Econ 101 at the Universität Giessen on StudySmarter:

When the money supply decreases

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People choose to hold a larger quantity of money if 

Exemplary flashcards for Econ 101 at the Universität Giessen on StudySmarter:

When the Fed buys government bonds, the reserves of the banking system

Exemplary flashcards for Econ 101 at the Universität Giessen on StudySmarter:

Monetary policy is determined by
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In the short run, an increase in the money supply causes interest rates to

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Other things the same, an increase in the amount of capital firms wish to purchase would initially shift

Exemplary flashcards for Econ 101 at the Universität Giessen on StudySmarter:

If speculators gained greater confidence in foreign economies so that they wanted to buy more assets of foreign countries and fewer U.S. bonds,

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Other things the same, when the government spends less, the initial effect is that

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When taxes decrease, consumption

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Exemplary flashcards for Econ 101 at the Universität Giessen on StudySmarter:

Econ 101

If aggregate demand shifts left, then in the short run
the price level and real GDP both rise.

Econ 101

According to liquidity preference theory, the money-supply curve would shift if the Fed
engaged in open-market operations.

Econ 101

Which of the following is not a determinant   of the long-run level of real GDP?
the price level

Econ 101

When the money supply decreases

interest rates fall and so aggregate demand shifts right.

Econ 101

People choose to hold a larger quantity of money if 
the interest rate rises, which cause the opportunity cost of holding money to rise.

Econ 101

When the Fed buys government bonds, the reserves of the banking system
decrease, so the money supply decreases.

Econ 101

Monetary policy is determined by
the president and Congress and involves changing government spending and taxation.

Econ 101

In the short run, an increase in the money supply causes interest rates to
increase, and aggregate demand to shift right.

Econ 101

Other things the same, an increase in the amount of capital firms wish to purchase would initially shift

aggregate demand right.

Econ 101

If speculators gained greater confidence in foreign economies so that they wanted to buy more assets of foreign countries and fewer U.S. bonds,

the dollar would appreciate which would cause aggregate demand to shift right.

Econ 101

Other things the same, when the government spends less, the initial effect is that

aggregate demand shifts right.

Econ 101

When taxes decrease, consumption

decreases as shown by a movement to the left along a given aggregate-demand curve.

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