Term
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Definition
| extraordinary high rate of inflation |
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Term
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Definition
| developing the quantity theory of money |
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Term
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Definition
| variables measured in monetary units |
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Term
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Definition
| variables measured in physical units |
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Term
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Definition
| the separation of of real and nominal variables |
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Term
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Definition
| the irrelevance of monetary changes for real variables |
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Term
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Definition
the rate at which money changes hand
V= price x quantity/ money supply |
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Term
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Definition
| when government raises revenue by printing money |
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Term
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Definition
| adjustment of the nominal interest rate to the inflation rate, gov increases the rate of money growth, long run of high inflation and high nominal interest |
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Term
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Definition
| when prices rise, buyers pay more for goods with the less purchasing power of the dollar |
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Term
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Definition
| cost of reducing your money holdings, the time and convenience you must sacrifice by going to the bank |
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Term
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Definition
| costs of price adjustment, frequently |
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Term
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Definition
| the profit made by selling an asset for more than its purchase price |
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Term
| trade surplus, net exports positive |
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Definition
| exports are greater than imports |
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Term
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Definition
| net exports negative, imports are more than exports |
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Term
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Definition
| purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners |
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Term
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Definition
| exchange rate at which the dollar can buy more of foreign money |
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Term
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Definition
| person can trade goods and services at one country for the goods and services of another |
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Term
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Definition
| theory at which at an exchange rate whereby a unit of any given currency should be able to buy the same quantity of goods in all country |
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Term
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Definition
| goods must sell the same price in all allocations |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| a limit on quantity of imports |
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Term
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Definition
| a govt policy that directly influences the quantity of g&s that a country imports or exports |
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Term
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Definition
| large and sudden movement of funds out of a country |
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