[Itchy]

最初由 benyaoguai 發表



macroeconomics is quite fun~~~



but micro's boring =.=

What's the difference?

[⊙蜂蜜熊⊙]

hee.. sorry for the ambiguity...


let me rephrase my second question..^^


hmm.. suppose money supply is constant..


and price goes up...


therefore real money goes down (M/P)


and why does dat increase interest rate??


I think it has something to do with money market curve and IS-LM curve...



...


...



...

[⊙蜂蜜熊⊙]

最初由 benyaoguai 發表



macroeconomics is quite fun~~~



but micro's boring =.=

I think it has something to do w/ the prof too bah...


hahaa...


I had Halevy for micro.. and gateman for macro...


THAT MAKES THE DIFFERENCE!!!!

[benyaoguai]

最初由 Itchy 發表


What's the difference?

micro..就是比較小的...
say like.. single firm behaviour.. or individual behaviour


macro 就是整體的
like.. business sector... goverment~~

[CK]

最初由 benyaoguai 發表



macroeconomics is quite fun~~~



but micro's boring =.=

i 2nd that

[⊙蜂蜜熊⊙]

最初由 Itchy 發表


Hmm... never taken economics before so don't take my word for this.


I THINK.. AND I STRESS I THINK...


Increase interest results increase in price. An increase of price level without a corresponding wage increase will reduce the real income of workers. Real income = real money. I am just B.S.ing here. :shurg:

it's sorta the same w/ my little own logic ne..^^


Price increase = purchasing power decrease


ppl demand for more money...


so interest rate has to increase in order to keep money demand and money supply equal..


喔耶~

[CK]

ummm


i just took macro last term, and i kinda forgot now. ><

[Itchy]

最初由 ⊙蜂蜜熊⊙ 發表



it's sorta the same w/ my little own logic ne..^^


Price increase = purchasing power decrease


ppl demand for more money...


so interest rate has to increase in order to keep money demand and money supply equal..


喔耶~

keke... *shaking hands *
:biglaugh: :biglaugh: :biglaugh:

Thanx for making a noob like me feel better.

[Itchy]

最初由 ~CK~ 發表
ummm


i just took macro last term, and i kinda forgot now. ><

[benyaoguai]

最初由 ⊙蜂蜜熊⊙ 發表
hee.. sorry for the ambiguity...


let me rephrase my second question..^^


hmm.. suppose money supply is constant..


and price goes up...


therefore real money goes down (M/P)


and why does dat increase interest rate??


I think it has something to do with money market curve and IS-LM curve...



...


...



...

hmm...
if price go down..
i can't remember if this is correct.. but here it goes...
take into consideration bah~


when price level go down..
that would mean that the demand for money would go down
so immediately the interest rate would be lowered~
however when interest rate is low
firms and business would increase their investment
and so that would move IS curve out~
and that is usually a greater effect compare to the price change~
so therefore would move the IS cuver so much out that the interest rate would actually increase~



that's my theory :shurg: