Money and interest rates
Cards (37)
- What is one function of money?
- How did transactions occur before money?
- What problem does money eliminate in transactions?
- What does money provide as a measure of value?
- How does money put a value on labor?
- What is required for money to be a store of value?
- What does a method of deferred payment allow?
- What are the characteristics of money?
- Why is durability important for money?
- What does divisibility in money mean?
- Why is portability a characteristic of money?
- What does uniformity in money ensure?
- Why is limited supply important for money?
- What does acceptability mean in the context of money?
- What is the money supply?
- What does narrow money include?
- What is broad money?
- How are interest rates determined?
- What happens when interest rates are above equilibrium?
- What is a liquidity trap?
- How do high interest rates affect consumer behavior?
- What is the effect of low interest rates on borrowing?
- What was the historic low interest rate in the UK since March 2009?
- What does the Quantity Theory of Money state?
- What is Fisher's equation of exchange?
- What does M represent in Fisher's equation?
- What does V represent in Fisher's equation?
- What does P represent in Fisher's equation?
- What does Q represent in Fisher's equation?
- What does T represent in Fisher's equation?
- What assumption does the equation make about velocity?
- What happens when the money supply increases?
- What is the result of increased money supply on employment?
- How does inflation affect the real value of money?
- What do workers demand in response to inflation?
- What happens to the SRAS curve due to inflationary pressure?
- What is the final outcome in the economy after inflationary pressure?