Term
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Definition
| Currency, traveler's checks, and checking deposits. |
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Term
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Definition
| All of M1 PLUS time, saving deposits, money market mutual funds, and other deposits |
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Term
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Definition
| Interest charged between banks for overnight loans and reserves. |
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Term
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Definition
| Fed buys bank securities. Pays bank by increasing reserve of that bank. |
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Term
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Definition
| Sum of Federal Reserve notes, coins, and bank deposits |
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Term
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Definition
| Ratio of the change in quantity of money to the change in the monetary base. |
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Term
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Definition
| Relationship between the quantity of real money demanded and the nominal interest rate. |
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Term
| If RGDP Decreases then.... |
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Definition
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Term
| Long Run Aggregate Supply |
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Definition
| Relationship between quantity of RGDP supplied and the price level when RGDP equals Potential GDP (Vertical at Potential GDP.) |
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Term
| Short Run Aggregate Supply |
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Definition
| Reltaionship between the quantity of RGDP supplied and the price level when the money wage rate, prices of other resources, and potential GDP remain constant. |
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Term
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Definition
| Relationship between the RGDP demanded and the price level. |
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Term
| When the Fed wants to slow down inflation.... |
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Definition
| They raise the Federal Funds Rate |
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