Econ unit 4 Flashcards
1
Q
Shifters of demand for money
A
Price level, income, and technology
2
Q
shifters of money supply
A
reserve ratio, discount rate, and open market operations
3
Q
demand loanable funds: Think of businesses
A
consumer expectations, gov deficit spending (gov spends more then taxes so needs to borrow)
4
Q
Supply of loanable funds: Think of consumers saving money
A
disposable income (more to save), economic outlook, foreign investment
5
Q
Discount rate
A
Interest rate fed charges banks to loan
6
Q
Fed funds rate
A
Rate banks charge each other for loans
