12. If the inflation rate tends to go up, then which of the following is the...
12. If the inflation rate tends to go up, then which of the following is the appropriate monetary policy that the Fed should conduct?
a. Open market sale which will increase interest rates and decrease money supply
b. Open market purchase which will increase interest rates and decrease money supply
c. Open market purchase which will decrease interest rates and increase money supply.
d. Open market sale which sale which will decrease interest rates and increase money supply
Homework Answers
Ans) the correct option is a. Open market sale which will increase interest rates and decrease money supply
To deal with inflation, open market sale should be done which leads to outflow of cash. Money supply decreases so interest rate will increase.
Add Answer to:
12. If the inflation rate tends to go up, then which of the
following is the...
Which of the following is an example of an expansionary fiscal policy? a. The US government increasing corporate taxes b...
Which of the following is an example of an expansionary fiscal policy? a. The US government increasing corporate taxes b. The US government lowering spending in order to balance the budget c. The US government lowering corporate and individual taxes d. The Fed lowering interest rates Which of the following is an example of contractionary monetary policy? a. The Fed conducting open market purchase b. The Fed conducting open market sale c. The US government increases taxes d. The Fed...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to appreciate b)exports increase c)interest rates decrease d)demand for loanable funds decrease e)decreases merchandise trade deficit 2. When the Fed decreases money supply to combat inflation, it cuases: a)the price of the U.S. dollar to decrease b) capital to flow out of the US c)an increase in the merchandise trade deficit d)an increase in private spending e) a decrease in the interest rates 3. Which...
In February 2014, South Africa had an inflation interest rates in January and is expected to increase or maintain the interest rates through 2014
QUESTION 4 In February 2014, South Africa had an inflation interest rates in January and is expected to increase or maintain the interest rates through 2014. The South African central bank is pursuing rate of 5.9 % and an unemployment rate of 24.1%. The South African central bank raised a(n): contractionary monetary policy to contain inflation. expansionary monetary policy to contain inflation. expansionary monetary policy to fight unemployment. contractionary monetary policy to fight unemployment QUESTION 5 When the economy is sluggish, the Fed will: raise interest rates, which...
Which of the following is a monetary policy intended to rein in inflation? a. Reduce interest...
Which of the following is a monetary policy intended to rein in inflation? a. Reduce interest rates to increase investment spending b. Increase the money supply to shift the aggregate demand curve rightward c. Reduce the interest paid on banks' reserves d. Decrease the money supply to shift the aggregate demand curve leftward
Which of the following are ways that the Federal Reserve influences the U.S. economy through its monetary policies?
3. How the Fed influences the money supply Which of the following are ways that the Federal Reserve influences the U.S. economy through its monetary policies? Check all that apply. O Using open-market operations to sell securities, the Fed can increase the money supply, thereby increasing interest rates and subsequently reducing the rate of inflation. O Using open-market operations to buy securities, the Fed can increase the money supply, thereby increasing interest rates, which would cause security prices to decrease. Using open-market operations to sell...
Suppose the Fed wanted to engage in an expansionary monetary policy. Which of the following should...
Suppose the Fed wanted to engage in an expansionary monetary policy. Which of the following should it do? a. Increase the reserve requirement ratio. b. Buy bonds on the open market. c. Sell bonds on the open market. d. Lower taxes. e. Increase the discount rate. The interest rate at which banks can borrow funds from the Fed is known as… a. the federal funds rate. b. the discount rate. c. the prime rate. d. the real interest rate. e....
Question 1 (1 point) An open market purchase of T-bills by the Fed will: have no...
Question 1 (1 point) An open market purchase of T-bills by the Fed will: have no effect on the money supply. decrease the money supply. increase the money supply. O increase the amount of government bonds held at banks. Question 2 (1 point) Contractionary monetary policy _____ interest rates, causing aggregate demand to shift to the lowers; right Olowers; left O raises; right Oraises; left Which of the following aggregate demand - aggregate supply models illustrates the short-run effects of...
12. Which of the following is most likely to occurif the Federal Reserve engages in open...
12. Which of the following is most likely to occurif the Federal Reserve engages in open market operations to reduce inflation? (A) A decrease in interest rates B) A decrease in reserves in the banking system C) A decrease in the govemment deficit D) An increase in the money supply increase in exports pon
If a monetary authority uses inflation targeting of 1% to 2% per year, deflation calls for:...
If a monetary authority uses inflation targeting of 1% to 2% per year, deflation calls for: a balanced budget. contractionary monetary policy. no change to monetary policy. quantitative easing. An increase in the interest rate causes the aggregate _____ curve to shift _____. supply; leftward demand; leftward demand; rightward supply; rightward When the interest rate falls, the value of the U.S. dollar in foreign exchange markets tends to _____ and net exports tend to _____. fall; decrease rise; decrease fall;...
answer please 25. A bank borrows money from another bank on an overnight basis to meet...
answer please
25. A bank borrows money from another bank on an overnight basis to meet reserve requirements in the: a. stock market. b. bond market. c. Federal funds market. d. U.S.Treasury bill market. 26. Fiscal policy in the United States is the responsibility of the: a. US Treasury b. Federal Reserve c. Internal Revenue Service d. US Congress and Administration 27. Monetary policy in the United States is the responsibility of the: b. Federal Reserve a. US Treasury c....
Question 1 (1 point) An open market purchase of T-bills by the Fed will: have no effect on the money supply. decrease the money supply. increase the money supply. O increase the amount of government bonds held at banks. Question 2 (1 point) Contractionary monetary policy _____ interest rates, causing aggregate demand to shift to the lowers; right Olowers; left O raises; right Oraises; left Which of the following aggregate demand - aggregate supply models illustrates the short-run effects of...
12. Which of the following is most likely to occurif the Federal Reserve engages in open market operations to reduce inflation? (A) A decrease in interest rates B) A decrease in reserves in the banking system C) A decrease in the govemment deficit D) An increase in the money supply increase in exports pon
answer please
25. A bank borrows money from another bank on an overnight basis to meet reserve requirements in the: a. stock market. b. bond market. c. Federal funds market. d. U.S.Treasury bill market. 26. Fiscal policy in the United States is the responsibility of the: a. US Treasury b. Federal Reserve c. Internal Revenue Service d. US Congress and Administration 27. Monetary policy in the United States is the responsibility of the: b. Federal Reserve a. US Treasury c....
Most questions answered within 3 hours.
-
Consider the following equilibrium system: COCl2(g) CO(g) +
Cl2(g) A 10.00 L evacuated flask is filled...
asked 26 minutes ago -
1) What are the two distinct steps that one needs to perform
when developing a data...
asked 30 minutes ago -
2) Write a C++ program that uses a class called “Degree” to
obtain the trigonometric
values...
asked 1 hour ago -
1. In eukaryotic cells the genomes of
&
asked 1 hour ago -
The standard enthalpy of propanol (C3H7OH) is -303.0 kJ/mol.
Compute both of the
gross and net...
asked 1 hour ago -
Why PWM using H-bridge for control motor speed is more power
effiecient than the linear amplifier...
asked 1 hour ago -
In 1999, Carly Fiorina famously said,"I hope that we are at a
point that everyone is...
asked 1 hour ago -
Individuals in a species of moth vary in wing color from white to
black, but all...
asked 2 hours ago -
The following standards for variable manufacturing overhead have
been established for a company that makes only...
asked 2 hours ago -
The United States government wanted to determine what proportion
of Americans approve of the current president,...
asked 2 hours ago -
2-N stone is dropped from the top of a cliff. The stone hits the
ground 3...
asked 2 hours ago -
Vitamins participate in metabolic reactions in their coenzyme
forms . Match the following reactions to the respective...
asked 2 hours ago