Topic 9: Macro Model Flashcards
1
Q
Show the diagram for the open capital market, with shifters.
A
2
Q
Show the diagram for foreign exchange
A
Income, and tariffs. An increase in the tariff decreases imports.
M - X
3
Q
Show the central banks balance sheet
A
4
Q
Derive the money multiplier
A
c = CM/D, p = RB/D
5
Q
What is the effect of inflation on money demand?
A
