Class Notes (838,076)
United States (325,281)
Economics (275)
ECON 305 (10)
Dr.Neri (9)
Lecture

next3

2 Pages
131 Views
Unlock Document

Department
Economics
Course
ECON 305
Professor
Dr.Neri
Semester
Spring

Description
Econ 2-18 chapter 4  Inflation rate = the percentage increase in the average level of prices = ∆P/P  Price = amount of money required to buy a good.  M is the money supply, pi is inflation, p is price level Since, prices are defined in terms of money we then need to consider nature and supply of money and how its controlled. Money is the stock of assets that can be readily used to make transactions Functions of money  medium of exchange we use it to buy stuff  store of value transfers purchasing power from the present to the future  unit of account the common unit by which everyone measures prices and values There are two types, fiat money which has no intrinsic value (paper money), and commodity money that has intrinsic value such as gold coins  The money supply is the quantity of money available in the economy.  Monetary policy is the control over the money supply. Monetary policy is conducted by a country’s centr
More Less

Related notes for ECON 305

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