What is loanable funds theory and how does it work

Reference no: EM133336914

Questions:

1. IS-LM model, definitions, derivation and assumptions.
2. Short run versus Long run, differences and how they affect the assumptions behind the IS-LM model.
3. Derivation of the IS-LM relations, and factors shifting them. Graphical and functional representation.
4. Solving equilibrium Y using the IS-LM model, functionally, and graphically. Finding the multiplier. Showing the output effects of changes in G and T using the functional form. Compare tax multiplier and government expenditure multiplier. Effects of differences in MPC across different income groups.
5. Fiscal and Monetary policy and the IS-LM model. Factors affecting IS-LM, and equilibrium i and Y.
6. Balanced budget multiplier. How do the effects of fiscal policy differ for different income groups?
7. The policy mix (compare fiscal and monetary policy composition during the 80s, 90s, and 2000s using IS-LM model).
8. Liquidity trap, causes, effects. Relationship between I, Sp and Sg.
9. Causes of recent tax cuts and expected effects. What would make them more effective?
10. Comparison of classical/neoclassical theory with Keynesian. How do they differ? How do changes in in C, I, G, T, M affect the Z and Y?
11. What are the main policy conclusions of the Classical economic theory?
12. What is loanable funds theory? How does it work?
13. According to Keynesian theory, why do economies not quickly bounce back from collapses?
14. According to Keynesian theory, what are the effects of uncertainty on I and Z?
15. What are the effects/costs/benefits of balanced budget requirements?
16. ALL required readings in the syllabus.

Reference no: EM133336914

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