Lesson 7 Flashcards
1
Q
Current Account
A
Ex-IM
NX
Now depends on real E (ExP*/P), Y-T
2
Q
Increased E
A
Increase E, Increased real E, increased CA, increased Demand
Shift the DD curve right
3
Q
DD Shiftors
A
G, I, P, T
4
Q
Asset Holders Decision
A
Non-monetary vs. Monetary
- Y/R
Monetary
- R, R*, Ee-E/E
5
Q
Asset Market Equilibrium
A
Ms/P [Real Money Supply] = L(R,Y) [Real Money Demand]
R = R* + (Ee-E/E)
6
Q
AA Shiftors
A
Ms, P, R*, Ee
