midterm 2 Flashcards
1
Q
rule of 72
A
small change in grwth rate make big change in living standard
doubles every 72/x% years
2
Q
loanable fund market
A
financial capital market
3
Q
APF
A
aggregat production function
total real output vs total inputs
4
Q
Money
A
store of wealth
medium of exchange
unit of account
5
Q
deman deposit
A
bank depo withdrawn on demand
6
Q
financial intermediat
A
bank
transform assets to liabilities
7
Q
money supply
A
currency + depos
8
Q
High pwered money
A
monetary base
og printed money
currenecy and reserves (not depo)
9
Q
wealth
A
accumulated pp
assets
10
Q
non bearing asset
A
money
11
Q
bond
A
IOU
debt financing
loan agreement
12
Q
debtor
A
borrower, seller
13
Q
creditor
A
lender, buyer
14
Q
Junk bond
A
BBB, hiegh yeild bond
15
Q
Liquidity Preference Function
A
willingness to hold money (cash balance) rather than bond
