Douglas has two master's degrees (MPA & MBA) and a PhD in Higher Education Administration. Successful investment decisions are made carefully by financial advisers that understand the micro- and macro-economic factors at play. In this lesson you'll learn how one of those factors - inflation -...
Inflation robs YOU of Purchasing Power Purchasing Power = amount of goods & services money buys Inflation Calculator Historical Inflation Germany: “hyperinflation” after World War I –Currency became worthless USA:Late 1970s Stagflation—inflation at +13% –Federal Funds rate rose to 15% to fight...
Question #1 Discuss the view that unemployment is a more serious economic problem that inflation. Why might Keynesian and Monetarist economists disagree on questions like this? Question #2 Distinguish between ‘supply side’ policies and ‘demand management’ policies. Why do many governments now appea...
FINANCING DEFICITS The method used to finance deficits or dispose of surpluses influences fiscal policy: Financing deficits can be done 2 ways: Borrowing: (Dzcrowding outdz effect) The government competes with private borrowers for funds, and could drive up interest rates; the government may ...
CHAPTER 12 AP I. FISCAL POLICY-THE USE OF GOVERNMENT SPENDING AND TAXATION TO MAINTAIN A STABLE ECONOMY. II. FISCAL POLICY AND THE AD/AS MODEL A. DISCRETIONARY.
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