Homework Answers
When price level increases, demand for money increases, shifting money demand curve rightward which will increase interest rate. A simultaneous open market sale will decrease money supply, shifting money supply curve leftward. The new, shifted money demand curve will intersect the new, shifted money supply curve. The new equilibrium will lead to higher interest rate and lower quantity of money (M1).
In following graph, MD0 and MS0 are initial money demand and money supply curves intersecting at point A with initial interest rate r0 and quantity of money M0. As MD0 shifts right to MD1 and MS0 shifts left to MS1, they intersect at point B with higher interest rate r1 and lower quantity of money M1.
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Oueiton 43 Not yet answered Points out of 5.00 In the money market framework, explain what...
3. Assume that the money market is initially in equilibrium and that the money supply is then increased. Explain th...
3. Assume that the money market is initially in equilibrium and that the money supply is then increased. Explain the adjustments toward a new equilibrium interest rate. Will bond prices be higher at the new equilibrium rate of interest? What effects would you expect that interest-rate change to have on the levels of output, employment, and prices? Answer the same questions for a decrease in the money supply 4. How is the chairperson of the Federal Reserve Board selected? Describe...
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...
Queston 45 Not yet answered Points out of 6.00 Y Flag In October, the US faced...
Queston 45 Not yet answered Points out of 6.00 Y Flag In October, the US faced a government shutdown as a result of the political stalemate in Washington associated with the funding of the Affordable Care Act. The result of the situation in October was to pass a temporary increase in government spending and revisit the discussion in February of this year Suppose this past February that the debt ceiling negotiations were unsuccessful resulting in another govemment shutdown that resulted...
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Question 1 The theory of liquidity preference implies that the equilibrium in the money market is...
Question 1 The theory of liquidity preference implies that the equilibrium in the money market is achieved by adjustments in Not yet answered Select one: Marked out of 2.00 a. the interest rate. P Flag question b. the aggregate demand. c. the menu cost. O d. real wealth. Question 2 Assume that the multiplier is 6. If there is no crowding-out effect, then a $60 billion increase in government expenditures causes aggregate demand to Not yet answered Marked out of...
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Question 9 Not yet answered Points out of 5.00 P Flag question What is the most stable intermediate formed in the reaction betwee ethyl-1 butene and H,0/H,SO? Select one:
please help Question 14 Not yet answered Points out of 1 P Flag question The Fed's...
please help
Question 14 Not yet answered Points out of 1 P Flag question The Fed's response to the financial crisis of 2007 and 2008 was to Select one: a. raise the reserve requirement. b. encourage discount window borrowing. c. reduce taxes on financial institutions e O d. raise the federal funds rate.
If the Federal Reserve Bank purchases a large stock of bonds, what happens to money supply?...
If the Federal Reserve Bank purchases a large stock of bonds, what happens to money supply? Explain. Use the money market diagram (money demand-money supply diagram) to illustrate the effects of such an intervention on the equilibrium interest rate. Why does the interest rate change (increase or decrease) following the bond purchase by the Fed?
Question 4 Flag question Not yet answered Marked out of 1.00 A feature of automatic stabilizers...
Question 4 Flag question Not yet answered Marked out of 1.00 A feature of automatic stabilizers is that they: Select one: a. automatically result in surpluses during recessions and deficits during economic booms b. automatically decrease the price level during inflation and increase the price level during deflation. C. do not require any legislative action by Congress to take effect. O d. guarantee that the federal budget will be balanced over the course of the business cycle.. o e. simultaneously...
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please check my answers (4)
Questi 13 Not yet answered Points out of 1.00 If four electronics companies agree to decrease their production of cell phones and raise the price of their cell phones to $400, this is an example of Flag question Select one: A. price fixing 8.market division C. monopolization D. bid rigging Antitrust laws are laws that Oeste 14 Not yet answered Points out of 1.00 P Flag question Select one: • A promote competition Bassist firms...
3. Assume that the money market is initially in equilibrium and that the money supply is then increased. Explain the adjustments toward a new equilibrium interest rate. Will bond prices be higher at the new equilibrium rate of interest? What effects would you expect that interest-rate change to have on the levels of output, employment, and prices? Answer the same questions for a decrease in the money supply 4. How is the chairperson of the Federal Reserve Board selected? Describe...
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...
Queston 45 Not yet answered Points out of 6.00 Y Flag In October, the US faced a government shutdown as a result of the political stalemate in Washington associated with the funding of the Affordable Care Act. The result of the situation in October was to pass a temporary increase in government spending and revisit the discussion in February of this year Suppose this past February that the debt ceiling negotiations were unsuccessful resulting in another govemment shutdown that resulted...
What is a common cause of macrocytic anemia? Question 43 Hot yet answered Points out of 7.00 Select one: a. Gastroesophageal Reflux Disease (GERD) b. Heart Failure c. Iron Deficiency Flag question d. Vitamin B12 Deficiency Question 44 Not yet answered Which of the following is a topical antiseptic that can cause bleaching of clothing and towels? Points out of 1.00 Flag question Select one: a. Erythromycin b. Tretinoin c. Benzoyl peroxide d. Clobetasol
Question 1 The theory of liquidity preference implies that the equilibrium in the money market is achieved by adjustments in Not yet answered Select one: Marked out of 2.00 a. the interest rate. P Flag question b. the aggregate demand. c. the menu cost. O d. real wealth. Question 2 Assume that the multiplier is 6. If there is no crowding-out effect, then a $60 billion increase in government expenditures causes aggregate demand to Not yet answered Marked out of...
Question 9 Not yet answered Points out of 5.00 P Flag question What is the most stable intermediate formed in the reaction betwee ethyl-1 butene and H,0/H,SO? Select one:
please help
Question 14 Not yet answered Points out of 1 P Flag question The Fed's response to the financial crisis of 2007 and 2008 was to Select one: a. raise the reserve requirement. b. encourage discount window borrowing. c. reduce taxes on financial institutions e O d. raise the federal funds rate.
Question 4 Flag question Not yet answered Marked out of 1.00 A feature of automatic stabilizers is that they: Select one: a. automatically result in surpluses during recessions and deficits during economic booms b. automatically decrease the price level during inflation and increase the price level during deflation. C. do not require any legislative action by Congress to take effect. O d. guarantee that the federal budget will be balanced over the course of the business cycle.. o e. simultaneously...
please check my answers (4)
Questi 13 Not yet answered Points out of 1.00 If four electronics companies agree to decrease their production of cell phones and raise the price of their cell phones to $400, this is an example of Flag question Select one: A. price fixing 8.market division C. monopolization D. bid rigging Antitrust laws are laws that Oeste 14 Not yet answered Points out of 1.00 P Flag question Select one: • A promote competition Bassist firms...
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