Homework Answers
(Question 33) Option (c)
Increase in money supply will decrease real interest rate, which will increase investment and aggregate demand. Higher aggregate demand will shift the AD curve rightward, increasing both price level and real GDP (output).
(Question 34) Option (b)
Increase in money supply will decrease real interest rate. But as price level will increase, nominal interest rate (= real interest rate x price level) will remain unchanged.
(Question 33) Option (a)
Increase in money supply will decrease real interest rate, which will increase planned investment.
All Hassan Al Ahm SNC Moodle d. the nominal interest rate During the Christmas shopping season,...
All Hassan Al Ahm SNC Moodle d. the nominal interest rate During the Christmas shopping season, the demand for money increases significantly. If the Fed takes no actions to offset the increase in money demand, then nominal interest rates will Finish attempt. 18 Time left 1:06:54 Not yet andnered Points out of Select one: Oa. decrease F Rag b, remain constant c, equal the real interest rates O d. increase Gueston 19 Not yet anseered Paints out of Prior to...
p Ali Hassan Al Ahmed Moodle Points out of 1.50 a. close an expansionary gap Ob....
p Ali Hassan Al Ahmed Moodle Points out of 1.50 a. close an expansionary gap Ob. close a recessionary gap O c raise bond prices 41 4243 4445 qwestion 46 47 Finish attempt Queston 23 Not yet The basic aggregate demand and aggregate supply curve model helps explain Time left 1:07:33 Points out of 1.50 Select one O a. the fluctuations in real GDP and the price level. b, Output fluctuations in an individual market. O c only long term...
6 11 12 27 28 41 42 In the long run, the inflation rate is determined...
6 11 12 27 28 41 42 In the long run, the inflation rate is determined by the ratio of nominal GDP to real GDP money supply growth rate the position of AD and AS curve the position of the long run Phillips curve QUESTION 25 In the long run, the unemployment rate is determined by O the rates of frictional and structural unemployment the rate of cyclical unemployment the rate of frictional unemployment the rate of structural unemployment Click...
4. If nominal money demand doubles and the real money supply also does what happens to...
4. If nominal money demand doubles and the real money supply also does what happens to the price level ( ). The price level increases by a factor of four b. The price level doubles ). The price level is unchanged. d. The price level falls by one-half. IL Short-Answer O stiens (19 points) 5. (7 points) If the Federal Reserve sold government securities, then the money supply (increase decrease remain the same), the money he would _(increase decrease remain...
It would be greatly appreciated if you can help to do the followings. Thanks! 1. 2....
It would be greatly appreciated if you can help to do the
followings. Thanks!
1.
2.
3.
4.
5.
Suppose that the liquidity effect is immediate and smaller than the other effects, and our expectations of inflation adjust quickly. Referring to the graphs on the right, choose the time path of interest rates from an increase in the growth rate of the money supply that occurs at time T." O A. GraphB O B. Graph A Interest Rate When the...
Question 27 (1 point) ✓ Saved According to the Classical Theory of Inflation: an increase in...
Question 27 (1 point) ✓ Saved According to the Classical Theory of Inflation: an increase in the price level causes the CPI index to fall to offset the increase. there is no relationship between price level increases and the value of money. These are two completely unrelated concepts. when the overall price level increases, the value of money also increases since it takes more money to purchase the same quant of goods as before. when the overall price level increases,...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 21)...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 21) 21) "Demand-pull inflation" refers to A) any inflation that is originally caused by a rightward shift of the AD curve but is maintained at a constant level by monetary validation. B) only the inflation that results from an expansionary monetary policy. C) any inflation that is originally caused by a rightward shift of the AD curve but is accelerating due to monetary validation. D)...
Please help with these questions, Question 11 0.16 pts If Firm A is making zero economic...
Please help with these questions,
Question 11 0.16 pts If Firm A is making zero economic profits, Firm A is breaking even when opportunity cost is taken into consideration. O Firm A is also making negative accounting profits. other firms want to enter the market. Firm A wants to shut down in the short run. O Firm A wants to leave the market. Question 12 0.16 pts If firms in a competitive market are making positive economic profits, the long-run...
Hello! Could you please answer all questions? I think the ones I put in blue are...
Hello! Could you please answer all questions? I think the ones I
put in blue are correct but I am not too sure.
QUESTION 7 Suppose people expect inflation to be 3 percent during the next several years. When the real interest rate is 5 percent, the money, or nominal interest rate, will be a. 1 percent. b. 7 percent. c. 4 percent. d. 8 percent. QUESTION 8 The idea that people like to work more for higher wages, but...
GIVE ONLY ANSWERS AND ANSWER ALL 130 120 100 90 o 15.0 155 16.0 165 170...
GIVE ONLY ANSWERS AND ANSWER ALL
130 120 100 90 o 15.0 155 16.0 165 170 175 Real GDP (trillions of 2009 dollars) 24) 24) In the above figure, the curve labeled A shifts rightward f B) the quantity of money decreases. D) the substitution effect occurs. A) expected future profits decrease C) taxes decrease. 25) 25) In the United States, of the following decades inflation was highest during the- - D) 2000s C) 1990s A) 1960s B) 1970s 26)...
All Hassan Al Ahm SNC Moodle d. the nominal interest rate During the Christmas shopping season, the demand for money increases significantly. If the Fed takes no actions to offset the increase in money demand, then nominal interest rates will Finish attempt. 18 Time left 1:06:54 Not yet andnered Points out of Select one: Oa. decrease F Rag b, remain constant c, equal the real interest rates O d. increase Gueston 19 Not yet anseered Paints out of Prior to...
p Ali Hassan Al Ahmed Moodle Points out of 1.50 a. close an expansionary gap Ob. close a recessionary gap O c raise bond prices 41 4243 4445 qwestion 46 47 Finish attempt Queston 23 Not yet The basic aggregate demand and aggregate supply curve model helps explain Time left 1:07:33 Points out of 1.50 Select one O a. the fluctuations in real GDP and the price level. b, Output fluctuations in an individual market. O c only long term...
6 11 12 27 28 41 42 In the long run, the inflation rate is determined by the ratio of nominal GDP to real GDP money supply growth rate the position of AD and AS curve the position of the long run Phillips curve QUESTION 25 In the long run, the unemployment rate is determined by O the rates of frictional and structural unemployment the rate of cyclical unemployment the rate of frictional unemployment the rate of structural unemployment Click...
4. If nominal money demand doubles and the real money supply also does what happens to the price level ( ). The price level increases by a factor of four b. The price level doubles ). The price level is unchanged. d. The price level falls by one-half. IL Short-Answer O stiens (19 points) 5. (7 points) If the Federal Reserve sold government securities, then the money supply (increase decrease remain the same), the money he would _(increase decrease remain...
It would be greatly appreciated if you can help to do the
followings. Thanks!
1.
2.
3.
4.
5.
Suppose that the liquidity effect is immediate and smaller than the other effects, and our expectations of inflation adjust quickly. Referring to the graphs on the right, choose the time path of interest rates from an increase in the growth rate of the money supply that occurs at time T." O A. GraphB O B. Graph A Interest Rate When the...
Question 27 (1 point) ✓ Saved According to the Classical Theory of Inflation: an increase in the price level causes the CPI index to fall to offset the increase. there is no relationship between price level increases and the value of money. These are two completely unrelated concepts. when the overall price level increases, the value of money also increases since it takes more money to purchase the same quant of goods as before. when the overall price level increases,...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 21) 21) "Demand-pull inflation" refers to A) any inflation that is originally caused by a rightward shift of the AD curve but is maintained at a constant level by monetary validation. B) only the inflation that results from an expansionary monetary policy. C) any inflation that is originally caused by a rightward shift of the AD curve but is accelerating due to monetary validation. D)...
Please help with these questions,
Question 11 0.16 pts If Firm A is making zero economic profits, Firm A is breaking even when opportunity cost is taken into consideration. O Firm A is also making negative accounting profits. other firms want to enter the market. Firm A wants to shut down in the short run. O Firm A wants to leave the market. Question 12 0.16 pts If firms in a competitive market are making positive economic profits, the long-run...
Hello! Could you please answer all questions? I think the ones I
put in blue are correct but I am not too sure.
QUESTION 7 Suppose people expect inflation to be 3 percent during the next several years. When the real interest rate is 5 percent, the money, or nominal interest rate, will be a. 1 percent. b. 7 percent. c. 4 percent. d. 8 percent. QUESTION 8 The idea that people like to work more for higher wages, but...
GIVE ONLY ANSWERS AND ANSWER ALL
130 120 100 90 o 15.0 155 16.0 165 170 175 Real GDP (trillions of 2009 dollars) 24) 24) In the above figure, the curve labeled A shifts rightward f B) the quantity of money decreases. D) the substitution effect occurs. A) expected future profits decrease C) taxes decrease. 25) 25) In the United States, of the following decades inflation was highest during the- - D) 2000s C) 1990s A) 1960s B) 1970s 26)...
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