Money and Economic Activity: An Analytical Approach

alter assumed bond rate central bank chapter commercial banks common stock comparative statics corporate cost of capital Cramer's rule currency debt demand deposits demand for financial demand for money deposit rate ceilings deposit rate setting determined earnings economic activity elasticity endogenous equation equilibrium equity excess reserves exogenous expected rate federal funds rate Federal Reserve System financial assets financial intermediaries firm fiscal policy function high-powered money hold impact implies increase indifference curve induce institutions investment investor issue legal ceilings liabilities long term macroeconomic market interest rates Modigliani monetarist monetary policy money demand money market money supply nonbank open market interest open market rates optimal public's demand R₁ rate of interest rate of return rate setting behavior reserve requirements risk savings deposit savings deposit rates short term specific supply of money term bond term interest rates term rates term structure tion unlevered variable variance wages wealth yield curve дів ду