Chapter 28.doc

3 Pages
50 Views
Unlock Document

Department
Economics for Management Studies
Course
MGEA06H3
Professor
Iris Au
Semester
Winter

Description
Chapter 28 - Money, Interest Rates, and Economic Activity Bonds - PV - the value now of one or more payments or receipts made in the future; often referred to as discounted pv - the pv of any bond that promised a future payment is negatively related to the market interest rate - the pv of a bond is the most someone would be willing to pay now to own the bond's future stream of payments - the equilibrium market price of any bond will be equal to its pv - market interest rate ↑, price of bond ↓, bond yields ↑ Demand for Money - total amt of money balances that the public wants to hold for all purposes - MD related to bond demand Determinants of MD - Interest rate • interest rate ↑, opportunity cost of holding money ↑, quantity of money demanded ↓ - Real GDP • real GDP ↑, volume of transactions ↑, quantity of money demanded ↑ - Price level • price level ↑, dollar value of a given volume of transactions ↑, quantity of money
More Less

Related notes for MGEA06H3

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit