ECON1-UC 301 050 Introduction to Macroeconomics Summer 2024 3Web

Java Python Division of Applied Undergraduate Studies (DAUS)

Summer 2024

Introduction to Macroeconomics

ECON1-UC 301 050

Assignment 3

Instructions:

This homework is due by midnight on Saturday  August 10. Please upload your 3-4 page paper (in .doc or .docx but not PDF format) on Brightspace.

Any emailed responses will automatically result in an F.

Please do not use any outside sources including non-academic ones (In ECON1-UC 301 050 Introduction to Macroeconomics Summer 2024 Assignment 3Web vestopedia, Wikipedia etc. You will automatically lose points if you do so.

Use your own writing (and no AI software which can be detected easily) along with in-text citations when appropriate.

Prompt:

This prompt requires you to understand how and why Robert Hockett challenges the loanable funds model of credit creation. Briefly explain the following models in his article:

a) The neoclassical models in Figures 1 and 2: customer savings control the credit supply.

b) The endogenous credit models in Figures 3 and 4 explain how public authority (central bank) is central to accommodation and monetization. Explain briefly what these terms mean