The flashcards below were created by user
gabo
on FreezingBlue Flashcards.
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Transactions demand for money
The stock of money people hold to pay averyday predictable expenses
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Precautionary demand for money
The stock of money people hold to pay unpredictable expenses.
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Speculative demand for money
The stock of money people hold to take advantage of expected future changes in the price of bonds, stocks, or other non-money financial assets.
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Demand for money curve
A curve representing the quantity of money that people hold at different possible rates,ceteris paribus.
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Monetarisim
The theory that changes in the money supply directly determine changes in prices, real GDP, and employment.
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Equation of exchange
An accounting identity that states the money supply times the velocity of money equals total spending
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Velocity of Money
The avegare # of times per year a dollar of the money supply is spent on final goods and services.
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Quantity theory of money
The theory that changes in the money supply are directly ralated to changes in the price level.
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Subprime mortage loan
A home loan made to barrowers with an above-average risk of default.
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