6. John Maynard Keynes
(1883 - 1946)
Father of Macroeconomics
The GeneralTheory of
Employment,
Interest and Money
The ideas of economists and political
philosophers are more powerful than
commonly understood; indeed the
world is ruled by little else.
11. Liquidity Theory
1. Money Supply is fixed by central bank with
policy tools (Debt Instrument Market, Discount
Rate, Reserve Requirement)
2. Money Demand - Liquidity - Interest rate is
the opportunity cost of holding money.
3. Equilibrium pressures
28. Quiz 8 Name ID
1. If the MPC is .7, what is the MPS?
2. If the MPC is .8, what will total new spending be if the
government spends 100 riyals?
3. If the money supply increases, what happens to interest rates?
4. If the price level increases what happens to interest rates?
5.What is the crowding-out effect?
6.Who is the father of Macroeconomics?
7.What two things happen to Aggregate Demand when
government borrows money to spend?
29. Physical Financial Human Intellectual Cultural Entrepreneural Total
Saudi Arabia
Qatar
U.A. E.
Jordan
Kuwait
Iraq
Egypt
Capital Analysis Scale 1-10 each category
1=lowest, 10=highest