ch.16 Flashcards
(12 cards)
1
Q
what is a permanent increase in money supply? what is inflation?
A
2
Q
How can we derice the formula of inflation from the change in monetary supply?
A
3
Q
How can we define PPP and relative PPP? formula and intutition
A
4
Q
WHat does change in E depends on in the monetary approach? Formula and intutiion?
A
5
Q
What is the effect of change in Y or Ms on E?
A
6
Q
How can we define the real exchange rate? formula and intuition
A
7
Q
What moves the RER?
A
8
Q
How can we represent the equilibrium in the RER?
A
9
Q
What is the effect of demand/supply shock on q?
A
10
Q
WHat does E depend on? How does it respond to shocks in money supply? change in Ms; change in growth of Ms
A
11
Q
How does E respond to real shocks? Demand and suppky side
A
12
Q
What is the fisher effect? How does R depend on infation?
A
