What is loanable funds theory and how does it work

Assignment Help Macroeconomics

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

Questions Cloud

What needs to be put in place to prevent the predicted : using one or more of the theories we covered to frame what needs to be put in place to prevent the predicted/forecast of future crime

Describe the importance of project governance management : Describe the importance of project governance management and its impact on project performance. And why is this topic important or not.

Qualitative and Qualitative tools and methods : Describe at least 3 types of Qualitative and Qualitative tools and methods related to people analytics and the advantages and disadvantages of each.

What is the ordering cost in $ per order : What is the total annual demand for chips at Upple? and What is the purchasing cost in $ per chip - What is the ordering cost in $ per order

What is loanable funds theory and how does it work : IS-LM model, definitions, derivation and assumptions. Short run versus Long run, differences and how they affect the assumptions behind the IS-LM model.

Explain what process should take place to decide : explain what process should take place to decide what the employee's payout should be.

Numerous statistics and facts associated : There are numerous statistics and facts associated with the need for greater diversity within the United States,

What are the critical issues in the case : What are the critical issues in the case How should they be resolved and cost overrun of approximately 60 percent. Following submittal of the final report

Why do the profits of companies fluctuate over time : Why do the profits of companies fluctuate over time? Should companies use their profits to make investments or to buy new ovens?

User Account

All Pages