Growth, Macroeconomics

Assignment Help:
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?

Related Discussions:- Growth

Utility maximisation - graphical presentation , Utility Maximisation: ...

Utility Maximisation: Graphical Presentation  Let consider a two-commodity world, x 1 and x 2 representing good I and good II respectively. p 1 and p 2 are the prices o

Adf test, Table Summary of results from the ADF test ...

Table Summary of results from the ADF test Test Number Oil GDP Interest rate Inflation Unemployment Exc

Increase demand for diamonds and in supply of diamonds, Suppose there is a ...

Suppose there is a simultaneous increase in the demand for diamonds and increase in the supply of diamonds. Which of the following will occur as a result of these simultaneous even

Example of introducing the government- accounting system, Example of Introd...

Example of Introducing the Government- ACCOUNTING SYSTEM   So far there was no government in any of our stylized economies. Let us now introduce it. To begin with, our governmen

Equilibrium analysis, A vital question is whether the equilibrium we have i...

A vital question is whether the equilibrium we have identified in labor market (with a high unemployment rate) can remain in long run. Will there not be adjustments which will take

Money market, suppose that a persons wealth is kshs. 50,000 and her yearly ...

suppose that a persons wealth is kshs. 50,000 and her yearly income is kshs. 60,000. suppose further that her money demand function is given by Md = y(0.35-i) where i= interest

Circular flow of income in an open economy, explain the effects of various ...

explain the effects of various injections and withdrawals and show the equilibrium in the circular flow

How commercial banks create money, Q. How commercial banks create money? ...

Q. How commercial banks create money? Commercial banks clearly can't influence the amount of currency in economy or monetary base because they aren't allowed to print money. Th

Theories of international trade, comparison between neoclassical factor end...

comparison between neoclassical factor endowment theory of international trade and classical labor cost theory of comparative advantage

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd