Money Matters
Money Pacquiao
G and T
Gov't Action
100
This is created when money is saved
What is Capital?
100
Today, who gives money its value?
What is The Law/The Government?
100
True/False: The government knows exactly how to adjust G and T to achieve the perfect pace of economic growth.
What is false?
100
True/False: Marginal Propensity to Save = MPC - 1
What is false?
200
Welfare programs, unemployment benefits, and tax system are?
What is Built-In Stabilizers
200
What happens when BSP raises the Reserve Requirement from 10% to 20%?
What is decrease in Money Supply?
200
Can running a deficit during a recession be beneficial?
Yes, can stimulate economy into full employment
200
What is the main purpose of the government?
What is to drive the economy towards economic growth?
300
What does monetary policy directly affect?
What is market for loanable funds?
300
How do Central Banks control the Money Supply?
1. Change RR
2. Change Lending Rate
3. Inject Money
4. Others
300
One peso of taxes decreases GDP by ______
What is -MPC/(1-MPC)?
300
Give one example of the government's built-in stabilizers.
What is welfare programs, unemployment benefits, the tax system?
(any one will do)
400
Inflation targeting is a tool for Central Banks to achieve what?
What is price stability?
400
How much is added to the money supply of BSP Registered BankMetro if Jhemerlhyn deposits PHP 111,897?
What is PHP11,189.7
Increase in Money Supply = Initial Cash Added/R (Reserve Requirement which is 10%)
400
Two ways taxes affect the economy: (1) reduces income earned by the people, (2) ______
What is demotivates firms and households to work?
400
How much additional consumption is generated when the government spends P15,000,000, and the marginal propensity to consume is 0.6?
What is P15,957,446.81?
500
This is the effect of what kind of policy?
What is Expansionary Fiscal Policy?
500
What specific kind of money do banks lend?
What are non-reserve deposits?
500
What government action is this?
What is reducing taxes? (to stimulate an economy out of recession without higher rates of inflation)
500
If the government does too much Expansionary Fiscal Policy, the Aggregate Demand curve shifts to the right too much. This causes over-inflation. Subsequent efforts to curb this might cause ______?
What is the economy to shrink?