EC140 Flashcards
1
Q
Crowding Out
A
A decrease in investment when the gov spends more than its earnings. So gov issue bonds, people buy more gov issued bonds than private bonds.
2
Q
What are the two monetary aggregates of money supply?
A
M1+ - term deposits and currency
M2 - term deposits and currency, nonpersonal demands and notice deposits
3
Q
What is the equation for money supply?
A
currency + demand deposits; deposits (liabilities) + loans (assets)
4
Q
A
