Growth, Macroeconomics

I used to think that economic growth ( more production) was only possible / able to occur because banks lent out more than they had (fractional reserve credit banking). Apparently , however, if velocity of money increases we can also have growth. Does this mean that if money supply never increased (credit via banks) that growth can still occur?
Posted Date: 8/6/2013 11:29:11 PM | Location : United Kingdom

Related Discussions:- Growth, Assignment Help, Ask Question on Growth, Get Answer, Expert's Help, Growth Discussions

Write discussion on Growth
Your posts are moderated
Related Questions
Components of Balance of Payments   The BoP statement is usually divided into three major groups of accounts. These are: i.The Current Account: This account records the imp

What is Trade liberalisation Trade liberalisation is the removal of barriers to trade. This has mainly taken the form of restrictions created by national governments like quot


Lucas’ point of view, what are the limitations of the Keynesian model? What improvements does he suggest?

Explain the excise terms of tax. The excise terms of tax: a. Tax incidence b. Excess burden c. Deadweight loss d. Tax revenue

Consider the economic data for Country A: Unemployment level of 15% Natural Rate of Unemployment is 6%. Required Reserves is 25% C = 50 + 0.75Y; I = 600; G = 250 (note: T = 200 for

Suppose that the U.S. Department of Agriculture (USDA) administers the price floor for cheese, set at $0.17 per pound of cheese. (The price floor is officially set at $16.10 per hu

Explain how changes in the quality of health care will influence the demand for care.

Neo-classical thinking on growth: Neo-classical  thinking  on  growth  is  owed  to  the Robert  Solow  whose  exogenous  growth models in the of the mid-20th century remained

How credit is created or the creation of credit