monetary and fiscal policy‚ thus overcome the complexity and reach the desired‚ stable condition that currently is vaguely at sight. In order to clarify the outcome of policy changes‚ this work will demonstrate‚ more precisely depict the increase in money supply and government spending through the combination of IS/LM/BP modeling‚ followed by Phillips curve as well (Lui‚ 2011). Main Body IS/LM Modeling The model is depicted in figure 1. Vertical axis represents interest rate (i)‚ whereas horizontal
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"Inside Job" is a 2010 documentary film about the financial meltdown of 2008 directed by Charles H. Ferguson. The film successfully answers the question "How did the housing bubble burst?" by exploring the changes in the policy environment as well as the banking practices helped create the financial crisis. The film focuses on changes in the financial industry in the decade leading up to the crisis‚ the political movement toward deregulation‚ and how the development of complex trading such as the
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1. If velocity of money is constant; real growth in the output of the economy is between -1.5% and +2.5%; and inflation is between -1% and 2.0%; what is the growth rate of money? Velocity of Money: the rate at which money changes hand. As we know‚ velocity of money is equal to the price multiplied by output divided by money supply. Mathematically‚ If velocity of money is constant‚ then‚ M (P Y) Thus‚ in terms of growth rate
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different than they were before ATMs Credit card such as Mastercard and Visa Money: anything that Is generally accepted in payment for goods and/or services or in the repayment of debts Money and wealth are not the same Business cycle: the up and down movement of aggregate output in the economy Before a recession‚ there is a downturn in the money growth rate but there is no measure that ties the business cycle to the money growth rate Price level: the average price of goods and services in tan economy
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ADMAP REVIEW OF THE MOVIE – INSIDE JOB Rohan Rambhia | PGP-10-155 Inside Job is an exemplary recount of how administrator’s role when exploited to form risky administrative strategies by means of faulty processes lead to a crisis of the stature of the recession of 2008. It is a comprehensive documentary which narrates the history of the collapse‚ not only going into great‚ informative depth about the risk-based strategies that put the global economy on the line‚ but looks back to the rise
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constant the new equilibrium point will be lower witch means that price of a bond will decrease and the interest rate will increase. If the economy grows the first effect we can see Is that the income will increase. When income increases the demand for money will increase shifting the demand curve to the right if every thing else is constant this will mean that the equilibrium point will change thus moving up and showing an increase in interest rate. 9. Find the “Credit Markets” column in the Wall Street
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billions of dollars. It basically brings out the role of the financial sector most specifically investment banks and their wrong decisions and excessive lending of money that eventually crashed the global economy. It also focuses on the fact that the executives and senior management of these financial institutions gambled with their customer’s money for their personal gains and kept investing in risky securities. It uncovers the role of different governments and administration in the growth of these institutions
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MSc(Econ) International Economics‚ Banking‚ and Finance Principles of Money & Banking Lecture Notes 1 The Definition of Money The definition of anything follows one of two procedures 1) Attach labels to real world objects – Nominalist (2) Attach labels concepts and then search for the corresponding real world entity - Empiricist Characteristics of Money 1) Medium of Exchange 2) Unit of Account 3) Store of Value Money has two meanings. As an abstract notion it is
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many people to blame For this week’s movie we had to watch: The Inside job and reflect upon it‚ for example give your opinion‚ give new insights and determine the ethical issues that occurred during the movie. Last week we saw The Company due to this movie I learned the meaning of ethics namely: where the law stops‚ ethics begins. I am curious if The Inside job is as interesting and mind blowing. After watching the Inside Job I have to say that I was a little depressed‚ it is really unbelievable
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Identify and discuss the interrelationships among the key factors highlighted in the global financial crisis “Inside Job” has identified two main themes that have been typically responsible for the financial crisis of 2008. Firstly‚ extensive deregulation since 1980s has been largely responsible. Secondly‚ the academia has played a pivotal role in legitimizing deregulation and has hence been indirectly‚ if not directly‚ responsible for the one of history’s biggest financial meltdowns. As far
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