What Are the Four Major Areas in Which Macroeconomists Work

question 28

Essay

What are the four major areas in which macroeconomists work? Give an example of a job in each.

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Definitions:

Reserve Requirements

Central bank regulations that set the minimum amount of reserves that must be held by commercial banks.

Money Supply

The money supply is the total amount of money—cash, coins, and balances in bank accounts—in circulation within a country's economy at a given time.

Discount Rates

Discount rates refer to the interest rate charged to commercial banks and other financial institutions for loans received from the central bank's discount window.

Federal Funds Rate

The interest rate banks and other depository institutions charge one another on overnight loans made out of their excess reserves.