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| Preliminary Contents | |
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| Introduction to Money and Banking | |
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| What's in This Text? | |
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| Ten (Surprising) Facts Concerning Money and Banking | |
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| Money and the Financial System | |
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| The Financial System and the Economy | |
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| Financial Securities | |
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| Matching Borrowers with Lenders Financial Markets | |
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| The Financial System | |
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| Application to Everyday Life: What Do Investors Care About | |
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| Money and Payments | |
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| How We Use Money | |
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| Counting Money Application to Everyday Life:What Do You Do with Your Change | |
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| Present Value | |
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| The Present Value of One Future Payment | |
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| The General Form of the Present-Value Formula | |
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| Using Present Value to Make Decisions | |
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| Using the Present-Value Formula to Calculate Payments | |
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| Looking Forward or Looking Backward at Returns | |
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| Application to Everyday Life: How to Negotiate a Car Lease | |
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| The Structure of Interest Rates | |
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| What Explains Differences in Interest Rates | |
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| The Term Structure of Interest Rates | |
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| The Term Premium | |
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| The Yield Curve and the Business Cycle | |
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| Policy Perspective: Can the Term Spread | |
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| Help Predict Recessions | |
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| Real Interest Rates | |
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| What Are Real Interest Rates | |
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| Real Present Value | |
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| What Affects Real Interest Rates | |
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| Application to Everyday Life: How Inflation and Taxes | |
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| Reduce Investors' Returns | |
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| Stocks and Other Assets | |
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| The Stock Market | |
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| How Can an Investor Profit in the Stock Market | |
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| Application to Everyday Life: Comparing Stocks with Bonds and Other Financial Investments | |
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| Fundamentals of Banking | |
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| How Banks Work | |
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| The Role of Banks | |
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| How Do Banks Earn Profits | |
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| Policy Perspective:Should the Fed | |
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| Let Reserve Requirements | |
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| Be Swept Away | |
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| Government's Role in Banking | |
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| Regulation of Banks Supervision of Banks | |
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| Policy Perspective: Should Mergers of Big Banks Be Allowed | |
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| Macroeconomics | |
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| Economic Growth and Business Cycles | |
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| Measuring Economic Growth Business Cycles | |
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| Application to Everyday Life: How Does Economic Growth | |
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| Affect Your Future Income | |
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| Modeling Money | |
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| The Atm Model of the Demand for Cash | |
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| The Liquidity-Preference Model | |
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| The Dynamic Model of Money Policy Perspective: Using Models of Money | |
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| Demand in Practice | |
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| The Aggregate-Demand/Aggregate-Supply Model | |
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| A Model of Aggregate Demand and Aggregate Supply | |
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| Analyzing Policy Using the Ad-As Model Large, Structural Macroeconomic Models | |
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| Policy Perspective: Did Large Macro Models | |
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| Mislead Policymakers in the 1970s | |
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| Modern Macroeconomic Models | |
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| Dynamic Models | |
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| Dynamic, Stochastic, General-Equilibrium Models | |
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| Statistical Models of the Economy Policy | |
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| Perspective: Do Modern Macroeconomic Models | |
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| Have Any Value for Policy | |
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| Economic Interdependence | |
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| The International Business Cycle | |
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| Exchange Rates Policy Perspective: How Independent Should a Country Be | |
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| Monetary Policy | |
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| The Federal Reserve System | |
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| Federal Reserve Banks | |
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| The Board of Governors | |
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| The Federal Open Market Committee Policy Perspective: Should the Federal Reserve Be So Independent | |
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| Monetary Control | |
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| Monetary Control Money Creation and Destruction by the Fed and by Banks | |
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| Realistic Money Multipliers | |
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| The Fed's Tools for Changing the Money Supply | |
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| The Market for Bank Reserves | |
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| Policy Perspective: Should the Fed Pay Interest on Reserves | |
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| Monetary Policy: Goals and Trade-Offs Stabilization Policy | |
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| Goals of Monetary Policy | |
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| The Fed's Objective Function Policy | |
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| Perspective: the Phillips Curve | |
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| Rules for Monetary Policy Rules Versus Discretion Money-Growth Rules | |
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| The Taylor Rule Inflation | |
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| Targeting Policy Issue: Why Don't Policymakers Follow Rules? | |