Seventh Edition - The Addison-Wesley Series in Economics Phần 2 doc

... monetary union point out the advan- tages that the single currency has in eliminating the transaction costs incurred in exchanging one currency for another. In addition, the use of a single currency may ... 0.09091 2 100 82. 64 8 .26 4 0.16 528 3 100 75.13 7.513 0 .22 539 4 100 68.30 6.830 0 .27 320 5 100 62. 09 6 .20 9 0.31045 6 100 56.44 5.644 0.33864 7 100 51. 32 5.1 32...

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... Substituting all the right-hand-side items in the equation for “Federal Reserve notes ϩ reserves” in the uses-of -the- base equation, we obtain the fol- lowing expression describing the sources of the ... identifies the nine factors affecting the monetary base listed in Table 2. As Equation 1 and Table 2 depict, increases in the first six factors increase the mo...

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... an increase in government spending. As we saw earlier, the increase in government spending shifts the IS curve to the right to IS 2 , and in the short run the economy moves to point 2 (the intersection ... interest rates when there is a rise in the money supply. As we saw in Figure 2, the rise in the money supply causes the LM curve to shift to LM 2 , and...

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... 381 notional principal The amount on which interest is being paid in a swap arrangement. 328 Glossary G-7 off-balance-sheet activities Bank activities that involve trad- ing financial instruments and the ... buyers. 26 principal–agent problem A moral hazard problem that occurs when the managers in control (the agents) act in their own interest rather than in the interest o...

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... and outline all the major points covered in the text. They have been class-tested successfully—they are in fact the notes that I use in class—and they should help other instructors prepare their ... average, than the other interest rates, and the spread between it and the other rates became larger in the 1970s. In Chapter 2 we study the role of bond markets in t...

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... spend time discussing the other two theories? There are two reasons. First, the ideas in these two theories provide the 128 PART II Financial Markets Following the Financial News The Wall Street ... lending at the risk-free rate and investing in port- folio M, the investor can obtain standard deviation-expected return combinations that lie along the line connecting A, B, M...

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... growing in recent years. Whereas in 1980 other noninterest income from off-balance-sheet activities represented only 5% of operating income, it reached 26 .8% in 20 02. Operating Expenses. Operating ... of $ 12 million times the change in the interest rate to get the following: ⌬I ϭ GAP ϫ⌬i ϭ $ 12 million ϫ 1% ϭ $ 120 ,000 Thus the manager finds that the finance company...

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... further their insurance activities, and with the passage of the Gramm-Leach-Bliley Act of 1999, banking institutions will further engage in the insur- ance business, thus blurring the distinction ... controlling over 50% of the out- standing stock in the United States. Thus, institutional investors are the predominant players in the stock markets, with over 70% of the...

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... changes in inter- est rates have a major impact on investors and finan- cial institutions’ profits, they are particularly interested in scrutinizing the Fed’s behavior. To assist in this task, financial ... column. R D R D R D R D R D E 1 E 2 R F ← E 2 E 1 R F 2 R F 1 ← E 1 E 2 R F 1 R F 2 ← E 2 E 1 R F 2 R F 1 ← E 2 E 1 R F 2 R F 1 ← E 1 E 2 R F 1 R F 2 ← E...

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... 20 03 20 01 20 02 2003 20 01 20 02 2003 5 10 15 20 Inflation (%) Inflation targeting begins Inflation targeting begins Inflation targeting begins (b) Canada Inflation (%) -2 0 5 10 15 1981 19 82 1983 ... Mathematical Treatment of the Baumol-Tobin and Tobin Mean-Variance Models appendix1 to chapter 22 1 interest rates are procyclical, rising in expansions and falling in...

Ngày tải lên: 05/08/2014, 13:20