Exploring Economic Factors Free Essay Example
Economics notes
If Interest rates rise, contract market value: decreases If interest rates fall, contract market value: increases Fiat money and demand deposits: – Generally accepted form of payment in Canada Product: – A commercial product, Used in place of redeemable scholarships. Convertible Notes: – Notes convertible into gold upon request. Legal Notes: – includes government bonds. Deposits: – includes bank deposits that can be withdrawn at any time Bank advances: – Loans Bank loans subject to: – Loss of capital and investment Loan costs and interest: Inverse correlation + currency note The aggregate quantity demanded of real GDP: 1.
Increases if the price level falls & decreases if the price level rises 2. Increase in aggregate demand (demand shock) 3. with lower interest rates 4. Decreases in aggregate demand (demand shock) There will be changes in aggregate demand if: – There is a change in government spending – Taxes change Aggregate demand for real GDP: ● Increase with positive demand shock ● Decrease with negative demand shock Canadian dollar appreciates: – Canadian interest rate rise – Canadian inflation rate fall – Real GDP in Canada increase – R.
O.W demand for Canadian experts increase Canadian dollar depreciates: – Canadian interest rate fall – Canadian inflation rate rise
