The Federal Reserve is for all intents and purposes independent of the Federal Government. Is this a good or a bad thing?
How have you or your family been impacted by inflation (good or bad)? If people switched more to crypto currencies do you think the impact be the same?
Should the U.S. prioritize lowering the trade deficit? Why or why not?
How could a country purposefully appreciate its currency? Why might it choose to do this?
If a country's economy experiences a shift causing the AD curve to move to the right, what will the short run impact be to real GDP and the price level? What will be the impact in the long run to real GDP and the price level?
Why may the actual multiplier experienced by changes in fiscal policy differ from the expected multiplier?
These 6 questions are totally different. they are not the sub part of each other. So, i can solve one of them. Here, the answer of first question.
(1.)
The Federal Reserve is for all intents and purposes independent of the Federal Government, Is this a good thing.
Explanation
When Federal Reserve adopt policies autonomously, without any political pressure, it come out to be more beneficial to the economy as a whole. When monetary policies of Federal Reserve is influenced by the government in order to gain political advantage, it has adverse or negative long run impact on economy. Which means gaining short-run gain at the cost of adverse impact on economy in the future. In such situation, it become more essential that, the Federal Reserve is for all intents and purposes independent of the Federal Government.
The Federal Reserve is for all intents and purposes independent of the Federal Government. Is this...
4. 25 points a. How can the Federal Government help to reduce or close the inflationary gap moving the economy back toward full employment using demand side fiscal policy. > Carefully explain your policy measure. > Account for the role of the spending multiplier in your answer. b. Explain carefully the potential impact, if applicable, on i. Aggregate Demand Aggregate Supply The Price Level The Level of real GDP The Interest Rates, The Budget Deficit, and The Trade Deficit. i....
Which of the following describes what the Reserve Bank of Australia would do to pursue an contractionary monetary policy? Use open market operations to buy bonds and securities. Use open market operations to sell bonds and securities Use open market operations to increase the overnight cash rate. Increase interest rates on mortgages and corporate loans. The Reserve Bank of Australia manages the supply of cash on a daily basis to ensure that every bank has sufficient cash to meet the...
Let’s say the Federal Reserve buys $20 Billion in bonds from private banks: *Total reserve requirement = 0.10 x $1Trillion = $100 Billion What is the total amount (in $) of reserves that banks can lend? Using the simple deposit multiplier, how much additional money (M1) is created by this process? What will happen to the Federal Funds Rate, the prime rate, and other nominal interest rates in the economy? (Go up, down, stay the same?) Why? If the price...
Question 1 (20 marks) The recent global outbreak of Covid-19 has major economic consequences. Using the AS-AD model, show what will be short-term impact of this crisis on the AIRLINE INDUSTRY Discuss some reasons why this impact may happen. b. Bank of Canada has already taken Fiscal and Monetary policy measures to stabilize the economy during the time of this outbreak. What actions has it take in terms of Fiscal Policy? In terms of Monetary Policy? (Provide specific details, Use...
Among the most important problems of implementing fiscal policy include all except which of the following? Correctly timing the desired fiscal stimulus, given the inevitable lags and forecasting errors Determining how large a stimulus to apply Assessing when policy actions should be reversed Determining how long a time lag to apply If the central bank does not use accommodating monetary policy, a fiscal stimulus is likely to increase interest rates, which in turn, will cause planned investment to decrease. What...
1. Jordan loaned Taylor $1,200 on March 15, 2009. Taylor returned $1,260 on March 14, 2010. Inflation was 2% over the 1-year period. What is the real interest rate that Taylor paid? 5% 2% 3% 7% 2. Which of the following is an example of money illusion assuming that inflation is 5%? You receive a 10% raise at your part-time job and start spending extra money on entertainment every weekend. You do not receive a raise at your part-time job...
9.What is Say’s Law and what do classical economists say about prices, wages, and interest rates? What are the three states of the economy in relating the real GDP to natural real GDP? In a recessionary gap, is there a surplus or a shortage of production? What does that imply about the labor market and how wages may change? Understand the differences between a recessionary gap, inflationary gap, and long run equilibrium. How is the physical production possibilities frontier (PPF)...
1. Suppose in a simple closed economy with MPC = 0.75, the planned investment spending nas suddenly fallen, reducing AD and output to a level that below the natural level of output by 100 Million. Assume that the real interest rate is constant so that there is no crowding out of (gross) investment. (a) If the government decided to try to get the output back to the natural level of output using only a change in government spending (AG), by...
Explain how an increase in national income in Canada and Mexico, causing them to invest more into the United States impacts the loanable funds market, what happens to the interest rate in the US and why? What happens to US GDP and why? Does foreign investment impact the loanable funds market in the same way that baby boomer's retiring will? Why or why not? Is foreign investment a good or bad thing for the US? Explain how having positive time...
please answer those two questions Questions 1. Do you think the efforts of Brazil's government to keep the economy growing will be successful? Why or why not? 2. What downsides might Brazil experience by implementing quotas, tariffs, and measures to devalue its currency? Video Case Keeping Brazil's Economy Hot It's been hot in Brazil. No, we're not talking about the country's temperature: We're talking about its economy, which has been growing at a heated pace. In 2010, the country's GDP...