Homework Answers
Consequence of hyperinflation is that money gets piled up more and more and the reserves held by people tend to be near zero because of ever rising prices.
Hence correctcanswer is spend time trying to keep money holdings near zero.
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A consequence of hyperinflation is that people O A. receive higher real wage hikes, which increases...
Which of the following events can cause an hyperinflation? Select one: O a. The government reduces...
Which of the following events can cause an hyperinflation? Select one: O a. The government reduces corporate taxes to help economic growth b. The government significantly raises interest rates O c. An increase in the cost of gasoline by 10% o d. The government increases minimum wage to account for the rising cost of living e. The government prints twice as much money to pay for the national debt
answer these will rate after If the Fed increases the discount rate, banks will face a...
answer these will rate after
If the Fed increases the discount rate, banks will face a higher cost of borrowing and will pass some of this cost onto customers in terms of higher interest rates. O it will be easier for banks to borrow the money needed to provide a higher volume of commercial loans. O it will then increase the required reserve ratio as well. O it will then decrease the required reserve ratio to offset any possible contractionary...
Which of these statements is NOT correct? A. If deflation occurs, you will receive a “real”...
Which of these statements is NOT correct? A. If deflation occurs, you will receive a “real” pay raise regardless of what happens to your nominal wage. B. If your nominal wages rise at a rate higher than the inflation rate, you have received a “real” pay raise. C. If your nominal wages rise at exactly the rate of inflation, your purchasing power over time remains constant. D. If your nominal wages rise at 4% while inflation rises at 5%, you...
Agritaban p us equity o 10 A Bank Make Money ily CAJ Pying higher interest rates...
Agritaban p us equity o 10 A Bank Make Money ily CAJ Pying higher interest rates on e s than we eamed on its assets Paying lower interest rates on its Babies than are eamed on i t s i) Making risky loans Dj Maintaining a high degree of liquidity 11. The Quantity Theory of Money (A) is based on the following equation: MVPO (Assumes that increases in money supply are deflationary (C) Assumes that the Velocity of Money is...
Items (5 items) (Drag and drop into the appropriate area below) wealth redistribution costs people incur...
Items (5 items) (Drag and drop into the appropriate area below) wealth redistribution costs people incur to avoid holding cash when there is inflation money illusion costs of changing decreased tax collection with inflation Categories Problems with inflation Not a problem < 0209 > O OF 9 QUESTIONS COMPLETED Different categories of expenditures are weighted differently in the consumer price index. Rank these items in from the highest share to the lowest share. Pieces of the CPI Items (6 items)...
1. TRUE/FALSE( 1 mark per question, 20 marksi 11] An economy's income is the same as...
1. TRUE/FALSE( 1 mark per question, 20 marksi 11] An economy's income is the same as its total) expenditure because every has a buyer and a seller every transaction ket value of all final goods and services produced by a country's citizens in a given period of time p) If'nominal GDP is $10,000 and real GDP is $8,000 then the GDP deflator is 125. thines equal, in countries with higher levels of real GDP per person, life expectancy and literacy...
50. Which of the following best illustrates the medium of exchange function of money? O A....
50. Which of the following best illustrates the medium of exchange function of money? O A. You keep some money hidden in your shoe. OB. You keep track of the value of your assets in terms of currency. O c. You pay for your double latte using currency. OD. You lend $25 to your friend. 51. Which of the following lists ranks assets from most to least liquid? O A. currency, fine art, stocks B. currency, stocks, fine art c....
Question 31 1.67 pts The consumer price index changes from 123.0 to 142.9. By how much...
Question 31 1.67 pts The consumer price index changes from 123.0 to 142.9. By how much percentage wise should your employer increase your wage if he wants to keep your purchasing power constant? Round to two decimal places and do not enter a sign Next • Previous Not saved Submit Qul @ 5. *** 44 80 & 7 $ 4 % 5 8 9 6 2 3 P U Y T 0 W E K L H G F D...
QUESTION 53 6.66 points Save Answer Which of the following is not a determinant of the...
QUESTION 53 6.66 points Save Answer Which of the following is not a determinant of the long-run level of real GDP? O a. available stock of human capital. O b. available technology O c. the price level. O d. the amount of capital used by firms. QUESTION 54 6.66 points Save Answer When households find themselves holding too much money, they respond by O a. purchasing interest-earning financial assets and interest rates fall. O b. holding the extra money and...
True/False (1 Point each) 1) When bond prices decrease, their yields to maturity increase. 2) The...
True/False (1 Point each) 1) When bond prices decrease, their yields to maturity increase. 2) The best forms of money and financial systems enjoy the benefits of trust, belief, and stability. 3) A fundamental function of a commercial bank is to take in deposits and make loans. 4) Traditional banks operate with low margins and high leverage. 5) Rates on bonds issued by a government can be negative. 6) ) The default risk premium is the same as the credit...
Which of the following events can cause an hyperinflation? Select one: O a. The government reduces corporate taxes to help economic growth b. The government significantly raises interest rates O c. An increase in the cost of gasoline by 10% o d. The government increases minimum wage to account for the rising cost of living e. The government prints twice as much money to pay for the national debt
answer these will rate after
If the Fed increases the discount rate, banks will face a higher cost of borrowing and will pass some of this cost onto customers in terms of higher interest rates. O it will be easier for banks to borrow the money needed to provide a higher volume of commercial loans. O it will then increase the required reserve ratio as well. O it will then decrease the required reserve ratio to offset any possible contractionary...
Agritaban p us equity o 10 A Bank Make Money ily CAJ Pying higher interest rates on e s than we eamed on its assets Paying lower interest rates on its Babies than are eamed on i t s i) Making risky loans Dj Maintaining a high degree of liquidity 11. The Quantity Theory of Money (A) is based on the following equation: MVPO (Assumes that increases in money supply are deflationary (C) Assumes that the Velocity of Money is...
Items (5 items) (Drag and drop into the appropriate area below) wealth redistribution costs people incur to avoid holding cash when there is inflation money illusion costs of changing decreased tax collection with inflation Categories Problems with inflation Not a problem < 0209 > O OF 9 QUESTIONS COMPLETED Different categories of expenditures are weighted differently in the consumer price index. Rank these items in from the highest share to the lowest share. Pieces of the CPI Items (6 items)...
1. TRUE/FALSE( 1 mark per question, 20 marksi 11] An economy's income is the same as its total) expenditure because every has a buyer and a seller every transaction ket value of all final goods and services produced by a country's citizens in a given period of time p) If'nominal GDP is $10,000 and real GDP is $8,000 then the GDP deflator is 125. thines equal, in countries with higher levels of real GDP per person, life expectancy and literacy...
50. Which of the following best illustrates the medium of exchange function of money? O A. You keep some money hidden in your shoe. OB. You keep track of the value of your assets in terms of currency. O c. You pay for your double latte using currency. OD. You lend $25 to your friend. 51. Which of the following lists ranks assets from most to least liquid? O A. currency, fine art, stocks B. currency, stocks, fine art c....
Question 31 1.67 pts The consumer price index changes from 123.0 to 142.9. By how much percentage wise should your employer increase your wage if he wants to keep your purchasing power constant? Round to two decimal places and do not enter a sign Next • Previous Not saved Submit Qul @ 5. *** 44 80 & 7 $ 4 % 5 8 9 6 2 3 P U Y T 0 W E K L H G F D...
QUESTION 53 6.66 points Save Answer Which of the following is not a determinant of the long-run level of real GDP? O a. available stock of human capital. O b. available technology O c. the price level. O d. the amount of capital used by firms. QUESTION 54 6.66 points Save Answer When households find themselves holding too much money, they respond by O a. purchasing interest-earning financial assets and interest rates fall. O b. holding the extra money and...
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