Economic Principles and Issues
Economic Principles and Issues ECO 2003
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Dr. Bettye Batz
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This 1 page Class Notes was uploaded by Dr. Bettye Batz on Thursday October 29, 2015. The Class Notes belongs to ECO 2003 at University of Texas at San Antonio taught by Edgar Ghossoub in Fall. Since its upload, it has received 22 views. For similar materials see /class/231430/eco-2003-university-of-texas-at-san-antonio in Economcs at University of Texas at San Antonio.
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Date Created: 10/29/15
Shayla Brown Eco 2003 NoTes November 16 2010 FacTors ThaT cause a demand To shifT in a differenT direcTion YConsumpTion InvesTmenT GovernmenT Trade a w e v is The process by which The moneTary auThoriTy of a counTry conTrols The supply of money ofTen TargeTing a raTe of inTeresT To aTTain a seT of objecTives orienTed Towards The growTh and sTabiliTy of The economy 1 These goals usually include sTable prices and low unemploymenT 1 Low STable InflaTion M 2 Low EmploymenT Full EmploymenT Economic GrowTh 3 STable Financial SecTor Open markeT OperaTionssimply The purchase and sale of shorT Term governmenT securiTy by The FED from Banks is when The Fed buys Treasuring securiTies from banks 0 Increase money in economy issue more loans affecTs economic acTiviTy Treausre The amounT of Treasuring SecuriTy from banks declines while The cash handling increases lead banks To issue more loans The Ted TargeTs The federal funds raTe RaTe aT which differenT banks borrow from each oTher Open MarkeT Sale TighT MoneTary Policy Fed Sells securiTies To Banks Bank Lending declines There is a lower bound on nominal IndusTryZERO CAN DO ANYTHING EXCEPT LOWER FUNDS TO ZERO
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