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More from Gale Pooley (20)
Macro 15
- 6. Chapter 15
Central Banks
Money Supplies
Fractional Reserve Banking
Reserve Ratio - Money Multiplier
Monetary Tools
Systemic Risks
Control
AD-AS Model
- 10. Negative Positive
Shift Left Shift Right
Aggregate
Supply
Curve
Bad weather Good weather
Higher oil price Lower Oil Price
Tech slump Tech boom
Higher business taxes or
regulations
Lower business taxes or regulation
War, Earthquake, Pandemic Smooth production
Aggregate
Demand
Curve
Slower Money Supply Growth Faster money Supply Growth
Fear Confidence
Reduced Wealth Increased Wealth
Higher Personal Taxes Lower Personal Taxes
Lower Government Spending Higher Government Spending
Decreased Export Growth Increased Export Growth
Increased Import Growth Decreased Import Growth
- 11. Negative Positive
Shift Left Shift Right
Aggregate
Supply
Curve
Bad weather Good weather
Higher oil price Lower Oil Price
Tech slump Tech boom
Higher business taxes or
regulations
Lower business taxes or regulation
War, Earthquake, Pandemic Smooth production
Aggregate
Demand
Curve
Slower Money Supply Growth Faster money Supply Growth
Fear Confidence
Reduced Wealth Increased Wealth
Higher Personal Taxes Lower Personal Taxes
Lower Government Spending Higher Government Spending
Decreased Export Growth Increased Export Growth
Increased Import Growth Decreased Import Growth
- 18. Money Multiplies as it is
spent and re-spent and re-
spent again and again…
RR = 1÷ MM
Money Multiplier