Slide 1 Money and Stabilization Policy KW Chapter 31 Slide 2 Velocity Define the ratio of transactions to the supply of money as ‘Velocity’, the speed with which money…
Slide 1 Stabilizers and Multipliers Chapter 21,22, 24, 28, 29 Slide 2 Consumption and Investment Expenditure are Sensitive to the Business Cycle Multiplier Effect: When household…
Slide 1 Monetary Policy and Inflation Chapter 29 & 30 Slide 2 Monetary Policy Slide 3 Channel of Monetary Policy When the central bank increases the monetary base, the…