16. Which statement best characterizes the effects of monetary policy? (1 mark) a. Monetary policy is...
16. Which statement best characterizes the effects of monetary policy? (1 mark)
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a. |
Monetary policy is neutral in both the short run and the long run; therefore, it does not affect real variables. |
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b. |
Monetary policy is neutral in the long run, but it may have effects on real variables in the short run. |
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c. |
Monetary policy has profound effects on real variables in both the short run and the long run. |
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d. |
Monetary policy has profound effects on real variables in the long run, but is neutral in the short run. |
Homework Answers
Monetary policy is neutral in the long run as monetary policy only raises in the long run and not output.Monetary policy is effective in the short run only.
Answer-B
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16. Which statement best characterizes
the effects of monetary policy? (1 mark)
a.
Monetary policy is...
Which statement best characterizes the effects of monetary policy? Monetary policy is neutral in both the...
Which statement best characterizes the effects of monetary policy? Monetary policy is neutral in both the short run and the long run; therefore, it does not affect real variables Monetary policy is neutral in the long run, but it may have effects on real variables in the short run Monetary policy has profound effects on real variables in both the short run and the long run Monetary policy has profound effects on real variables in the long run, but it...
Which statement best defines the velocity of money? (1 mark) a. It is the rate at...
Which statement best defines the velocity of money? (1 mark) a. It is the rate at which the central bank puts money into the economy. b. It is the long-term growth rate of the money supply. c. It is the money supply divided by nominal GDP. d. It is the average number of times per year a dollar is spent. In the 1970s, in response to recessions caused by an increase in the price of oil, the central banks in...
9. What does the evidence from hyperinflations indicate with respect to the quantity theory of money?...
9. What does the evidence from hyperinflations indicate with respect to the quantity theory of money? (1 mark) a. Evidence shows that money growth and inflation moved together, which supports the quantity theory. b. Evidence shows that money growth and inflation moved together, which does not support the quantity theory. c. Evidence shows that money growth and inflation did not move closely with each other, which supports the quantity theory. d. Evidence shows that money growth and inflation did not...
4. Which of the following statements about monetary neutrality is accurate? (x) Printing money to finance...
4. Which of the following statements about monetary neutrality is accurate? (x) Printing money to finance government expenditures has profound effects on real variables in the long run, but is neutral in the short run. (y) Although monetary policy is neutral in the long run, it may effect real variables in the short run. (z) In the long run when money is neutral, nominal interest rates increase when the money supply growth rate increases, but real interest rates do not....
52. Studying alternative theories of how people form expectations is particularly relevant to monetary policy because...
52. Studying alternative theories of how people form expectations is particularly relevant to monetary policy because A. if people fully expect inflation to occur, the effects of monetary policy are more widespread. monetary policy can only have real effects on the economy if people fully expect inflation. c. unexpected inflation cause prices to be flexible. d. the effects of expected inflation are completely different from the effects of unexpected inflation e expected inflation causes prices to become sticky. 53. Monetary...
Describe the effects of contractionary monetary policy by the domestic central bank on output, the real...
Describe the effects of contractionary monetary policy by the domestic central bank on output, the real interest rate, and net exports in both the domestic and foreign country, using a Keynesian model in the short run. What happens in the long run? (Word Limit: 100 words)
An economy is initially at potential output, in the long run, expansionary monetary policy is expected:...
An economy is initially at potential output, in the long run, expansionary monetary policy is expected: a) not to affect output in the long run b) not to affect output in either the short run or the long run c) to affect output, but only in the long run d) to affect output in both the short run and the long run Which of the following monetary policies likely decreases aggregate demand and, in the short run, output? a) A...
1. In order to speed up the monetary policy effects, there should be a combo of...
1. In order to speed up the monetary policy effects, there should be a combo of tools used, which are: a) buying bonds and increasing the discount rate b)buying bonds and increasing the RRR c)Increasing the RRR and selling bonds d) Increasing both the RRR and the discount rate e) Decreasing the discount rate while increasing the RRR 2. Which of these are not a way that banks can increase reserves to meet the RRR? a) call in loans b)borrow...
10. An assistant professor of economics gets a $100-a-month raise, but then she figures that with...
10. An assistant professor of economics gets a $100-a-month raise, but then she figures that with her current monthly salary she can't buy as many goods as she could last year. What has happened to her real and nominal wage? (1 mark) er real and awaren lerroan were alle eral wa t erminal wage has eral wage has fallen bu hermal wage has 11. Which statement best defines the velocity of money? (1 mark) e the gam sem of the...
The graph shows the effects of an expansionary monetary policy, which, over time, results in shifts...
The graph shows the effects of an expansionary monetary policy, which, over time, results in shifts of both the aggregate demand curve (AD1 to AD2) and the short-run aggregate supply curve (SRAS1 to SRAS2) If the dot indicates the economy's initial equilibrium state, place a second dot to show the economy's new equilibrium in the short run, given that the monetary policy move was completely expected. To refer to the graphing tutorial for this question type, please click here. Price...
52. Studying alternative theories of how people form expectations is particularly relevant to monetary policy because A. if people fully expect inflation to occur, the effects of monetary policy are more widespread. monetary policy can only have real effects on the economy if people fully expect inflation. c. unexpected inflation cause prices to be flexible. d. the effects of expected inflation are completely different from the effects of unexpected inflation e expected inflation causes prices to become sticky. 53. Monetary...
10. An assistant professor of economics gets a $100-a-month raise, but then she figures that with her current monthly salary she can't buy as many goods as she could last year. What has happened to her real and nominal wage? (1 mark) er real and awaren lerroan were alle eral wa t erminal wage has eral wage has fallen bu hermal wage has 11. Which statement best defines the velocity of money? (1 mark) e the gam sem of the...
The graph shows the effects of an expansionary monetary policy, which, over time, results in shifts of both the aggregate demand curve (AD1 to AD2) and the short-run aggregate supply curve (SRAS1 to SRAS2) If the dot indicates the economy's initial equilibrium state, place a second dot to show the economy's new equilibrium in the short run, given that the monetary policy move was completely expected. To refer to the graphing tutorial for this question type, please click here. Price...
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