An increase in the Canadian money supply would cause Canadian output to ________ and the Canadian...
An increase in the Canadian money supply would cause Canadian output to ________ and the Canadian net exports to ________ in the short run using a Keynesian model. A) rise; rise B) fall; rise C) rise; fall D) fall; fall
Homework Answers
an increase in the money supply can get to result in more money available for the production of the goods in the short run with which the output increases and increase in money supply results in increase in inflation which makes the currency depreciate against foreign currency which makes the export cheaper for foreign countries and with this the demand increases and more exports will take place
Therefore (A) rise; rise is the answer to the question
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An increase in the Canadian money supply would cause Canadian
output to ________ and the Canadian...
According to the classical model, an increase in the money supply causes a. output to increase...
According to the classical model, an increase in the money supply causes a. output to increase in the long run. b. the unemployment rate to fall in the long run. c. prices to rise in the long run. d. interest rates to fall in the long run.
It is not necessary to write detail answer, some question is easy to find answer, you...
It is not necessary to write detail answer, some question is
easy to find answer, you dont need to explain in detail, thank you
:)
7. Everything else held constant, if aggregate output is to the right of the LM curve, then there is an excess of money which will cause the interest rate to A) supply; fall- B) supply; rise- C) demand; fall- D) demand; rise- t 8. If the economy is on the LM curve, but is to...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a chan...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a change in investment expectations d. both a and c e. both b and c 6. In the Keynesian theory of liquidity demand and the interest rate which of the following occurs during excess supply of money. a. individuals sell bonds, driving interest rates down...
Increase in the Money Supply in the USA Effect on Canadian GDP
Suppose the Federal Reserve (the USA central bank) increases the money supply in the USA. What would be the effect of this monetary expansion in the USA on the Canadian GDP? Specifically, explain what happens to the Canadian net exports (hint: there is more than one way that the US monetary expansion influences the Canadian net exports, and you should try to describe & explain the overall impact).
22) Using classical theory, an increase in the capital stock, other things equal, would cause 22)...
22) Using classical theory, an increase in the capital stock, other things equal, would cause 22) A) output to rise and price levels to fall B) output and prices to both rise C) a decrease in equilibrium employment D) an increase in labor supply and output 23) In the classical model; an increase in government spending funded by borowing would 23) A) increase demand for loanable funds, resulting in more consumption spending B) induce households to save more and firms...
A decrease in the overall supply of money by implementing easy money policy wil: a)cause the...
A decrease in the overall supply of money by implementing easy money policy wil: a)cause the equilibrium federal funds rate to rise b) increase the transactions demand for money c) decrease the asset demand for money d) cause the equilibrium federal funds rate to fall
19. What happens to prices and output when the long-run aggregate-supply curve shifts left? a....
19. What happens to prices and output when the long-run aggregate-supply curve shifts left? a. Prices and output both increase. b. Prices and output both decrease. c. Prices increase and output decreases. d. Prices decrease and output increases. 20. What would cause prices and real GDP to rise in the short run? a. an increase in the expected price level b. an increase in the money supply ...
12. When the Federal Reserve increases the money supply, at a given price level the amount...
12. When the Federal Reserve increases the money supply, at a given price level the amount of output demanded is and the aggregate demand curve shifts a. greater, inward b. greater, outward c. lower, inward d. lower, outward 13. Aggregate supply is the relationship between the quantity of goods and services supplied and the a. Money supply b. Unemployment rate c. Interest rate d. Price level If a short-run equilibrium occurs at a level of output above the natural level,...
An increase in the Money Supply: Select one: O a. leads to a fall in prices...
An increase in the Money Supply: Select one: O a. leads to a fall in prices and an increase in consumption, shifting the AD to the left O b.leads to an increase in net exports, shifting the AS to the right O c. leads to a fall in interest rates and a consequent increase in investment, shifting the AD to the right O d. none of the above if a country that is a trade partner of ours falls into...
Which would most likely shift the aggregate supply curve? A change in the prices of _____....
Which would most likely shift the aggregate supply curve? A change in the prices of _____. domestic products foreign products financial assets resources A decrease in aggregate demand in the short run will reduce _____. both real output and the price level the price level and increase the real domestic output the real domestic output and have no effect on the price level the price level and have no effect on real domestic output The economy's long-run AS curve assumes...
It is not necessary to write detail answer, some question is
easy to find answer, you dont need to explain in detail, thank you
:)
7. Everything else held constant, if aggregate output is to the right of the LM curve, then there is an excess of money which will cause the interest rate to A) supply; fall- B) supply; rise- C) demand; fall- D) demand; rise- t 8. If the economy is on the LM curve, but is to...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a change in investment expectations d. both a and c e. both b and c 6. In the Keynesian theory of liquidity demand and the interest rate which of the following occurs during excess supply of money. a. individuals sell bonds, driving interest rates down...
12. When the Federal Reserve increases the money supply, at a given price level the amount of output demanded is and the aggregate demand curve shifts a. greater, inward b. greater, outward c. lower, inward d. lower, outward 13. Aggregate supply is the relationship between the quantity of goods and services supplied and the a. Money supply b. Unemployment rate c. Interest rate d. Price level If a short-run equilibrium occurs at a level of output above the natural level,...
An increase in the Money Supply: Select one: O a. leads to a fall in prices and an increase in consumption, shifting the AD to the left O b.leads to an increase in net exports, shifting the AS to the right O c. leads to a fall in interest rates and a consequent increase in investment, shifting the AD to the right O d. none of the above if a country that is a trade partner of ours falls into...
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