5.3-5.5 - Money Growth and Inflation, Government Deficits and National Debt & Crowding Out

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Across
  1. 2. What has happened to the money supply if inflationary expectations have decreased?
  2. 3. When the money supply continues to expand to finance government spending, causing this to occur
  3. 6. If the money supply is $2500, and nominal GDP is equal to 5000, what is the money velocity? Answer in word form
  4. 10. Curve consisting of borrowers and investors and can shift with increases government borrowing on the Loanable Funds Market Model
  5. 13. Government spending exceeds tax revenues
  6. 16. When can monetary policy increase real output?
  7. 17. Can be used to assess a government's ability to pay its debt
  8. 20. How governments typically finance their deficit spending
  9. 21. If the economy is operating at full employment and the money supply increases, according to the quantity theory of money, what will increase?
Down
  1. 1. What is affected by increases government borrowing as shown on the Loanable Funds Market Model
  2. 4. A graph that can be used to view the adverse effects of government borrowing on private investment and real interest rate
  3. 5. The accumulation of all the budget deficits over time due to the government in a nation
  4. 7. The "Y" in the Quantity Theory of Money
  5. 8. The corresponding school of thought to MV=PY
  6. 9. An adverse effect of government borrowing in a deficit
  7. 11. At full employment, changes in the money supply will have no effect on this in the long run
  8. 12. With increased borrowing, a government must pay this which eliminates its alternative uses and increases the national debt
  9. 14. The average times a dollar is spent and re-spent in a year
  10. 15. The adverse effect of the central bank increasing the money supply, in the long run
  11. 18. Tax revenues exceed government spending
  12. 19. Causes a decrease in capital stock, thus decreasing output when this is affected by crowding out