Maintaining the growth of the money supply at a constant rate is an example of a...
Maintaining the growth of the money supply at a constant rate is an example of a
A.
discretionary policy.
B.
the gold standard.
C.
an inflation targeting rule.
D.
a money demand rule.
E.
a money targeting rule.
Homework Answers
The correct option is A) Discretionary policy.
Discretionary monetary policy calls for maintaining the growth of the money supply at a constant rate.
Add Answer to:
Maintaining the growth of the money supply at a constant rate is
an example of a...
Maintaining the growth of the money supply at a constant rate is an example of a...
Maintaining the growth of the money supply at a constant rate is an example of a O A. the gold standard. OB. an inflation targeting rule. O C. a money targeting rule. OD. discretionary policy. O E. a money demand rule.
7. Assume that output growth in the U.S. is 2%, money demand (L) is constant and money supply growth is 4%. Assume that...
7. Assume that output growth in the U.S. is 2%, money demand (L) is constant and money supply growth is 4%. Assume that output growth in China is 5%, L is constant and money supply growth is 9%. a. Assume that relative PPP and the quantity theory of money holds. What is the growth rate of the dollar-China exchange rate (%∆E$/China)? b. What should money supply growth be in China if China wants to fix its currency to the dollar?...
42. On a given aggregate demand curve, if the rate of spending growth is 10% and the growth rate of the money suppl...
42. On a given aggregate demand curve, if the rate of spending growth is 10% and the growth rate of the money supply is 2%, then the velocity of money must be growing at: A) 5% B) 8%. 12%. D) 20% 43. According to the quantity theory of money, if both the growth rate of the money supply and the velocity of money are fixed, then a higher inflation rate means: A) a higher real growth rate. B) no change...
Of the following, which is NOT a monetary policy rule the Fed could follow? A. a...
Of the following, which is NOT a monetary policy rule the Fed could follow? A. a k-percent rule B. a money targeting rule C. a gold price targeting rule D. an unemployment rate targeting rule E. an inflation targeting rule.
7. Assume that output growth in the U.S. is 2%, money demand (L) is constant and...
7. Assume that output growth in the U.S. is 2%, money demand (L) is constant and money supply growth is 4%. Assume that output growth in China is 58, L is constant and money supply growth is 98. a. Assume that relative PPP and the quantity theory of money holds. What is the growth rate of the dollar-China exchange rate (AES/China)? b. What should money supply growth be in China if China wants to fix its currency to the dollar?...
If the money supply growth rate permanently increased from 4 percent to...
Question 35 If the money supply growth rate permanently increased from 4 percent to 10 percent, what would we expect to happen to the inflation rate and the nominal interest rate? Both the inflation rate and the nominal interest rate would increase by less than 6 percent. The inflation rate would increase by 6 percent, and the nominal interest rate would increase by less than 10 percent. The inflation rate would increase by less than 6 percent, and the nominal interest rate would increase...
If you were the Federal Reserve chairman, which monetary policy would you advise the federal government...
If you were the Federal Reserve chairman, which monetary policy would you advise the federal government to adopt? Explain why. o Return to the classical gold standard o A gold price targeting policy o A monetary rule (i.e., increase the M2 money supply at a steady rate equal to the long-term real GDP growth rate, and allow interest rates to fluctuate without interference. o Price inflation target, i.e., set a maximum price inflation target, based on the Consumer Price Index...
Assume that a country's money velocity remains constant and that the rate of money growth is...
Assume that a country's money velocity remains constant and that the rate of money growth is 4%. A) What is the rate of spending growth? B) If money growth increases by 1.5 percentage points and consumption growth increases by 0.5 percentage points, what is the new rate of spending growth? C) Given your answer in Part B, what is the long-run rate of real GDP growth at an inflation rate of 4%?
The following problem illustrates Milton Friedman's money growth rule which is a center piece of the...
The following problem illustrates Milton Friedman's money growth rule which is a center piece of the Monetarist thinking of macroeconomics. Suppose the economy is given by the following: Production Function: Yt = 10 Kt 0.4(Lt Et) 0.6 Consumption Function: Ct = 0.8 Yt Depreciation rate: 8% (i.e. δ = 0.08). Population growth: 2% (i.e. n= 0.02). Technological growth: 2% (i.e. g= 0.02). Money demand: ( ?? ?? ) ? = ? ?(?? ) = 2?? . In addition, suppose that...
The figure below shows the growth in the money supply and average inflation rates for 160...
The figure below shows the growth in the money supply and
average inflation rates for 160 countries from 1991–2011. For most
countries, there is a one-to-one ratio between money growth and
inflation. For example, both the growth in the money supply and the
average inflation rate was close to 100% in Belarus.
Refer to the figure to answer the following questions.
1st attempt
Part 1 (1 point)
See Hint
Consider the countries that lie on the line, which shows a
one-to-one...
Maintaining the growth of the money supply at a constant rate is an example of a O A. the gold standard. OB. an inflation targeting rule. O C. a money targeting rule. OD. discretionary policy. O E. a money demand rule.
42. On a given aggregate demand curve, if the rate of spending growth is 10% and the growth rate of the money supply is 2%, then the velocity of money must be growing at: A) 5% B) 8%. 12%. D) 20% 43. According to the quantity theory of money, if both the growth rate of the money supply and the velocity of money are fixed, then a higher inflation rate means: A) a higher real growth rate. B) no change...
Of the following, which is NOT a monetary policy rule the Fed could follow? A. a k-percent rule B. a money targeting rule C. a gold price targeting rule D. an unemployment rate targeting rule E. an inflation targeting rule.
7. Assume that output growth in the U.S. is 2%, money demand (L) is constant and money supply growth is 4%. Assume that output growth in China is 58, L is constant and money supply growth is 98. a. Assume that relative PPP and the quantity theory of money holds. What is the growth rate of the dollar-China exchange rate (AES/China)? b. What should money supply growth be in China if China wants to fix its currency to the dollar?...
The figure below shows the growth in the money supply and
average inflation rates for 160 countries from 1991–2011. For most
countries, there is a one-to-one ratio between money growth and
inflation. For example, both the growth in the money supply and the
average inflation rate was close to 100% in Belarus.
Refer to the figure to answer the following questions.
1st attempt
Part 1 (1 point)
See Hint
Consider the countries that lie on the line, which shows a
one-to-one...
Most questions answered within 3 hours.
-
To buy a new house you must borrow $155,000. To do this you take
out a...
asked 15 minutes ago -
Spacely Sprockets is evaluating the construction of a new plant
on land the company purchased for...
asked 1 hour ago -
1. Consider a linear regression model of y on K regressors and
an intercept.
(i) Describe...
asked 1 hour ago -
Enter a balanced equation for the reaction between hydrochloric
acid and sodium sulfite.
Express your answer...
asked 1 hour ago -
Give a regular expression describing the language
{x | x ∈ Σ* and x does not...
asked 1 hour ago -
Masses of 1.0 kg, 2.0 kg, and 3.0 kg are each separately subject
to a net...
asked 1 hour ago -
The mode of philosophical argumentation and thought. How do
philosophers think and write? What is important...
asked 1 hour ago -
At the beginning of the unit, you were asked whether you thought
it was appropriate or...
asked 1 hour ago -
Calculate the grams of carbon in 9.32 x 10+23 molecules of
benzene (C6H6).
asked 1 hour ago -
A 5-year Treasury bond has a 4.95% yield. A 10-year Treasury
bond yields 6.6%, and a...
asked 1 hour ago -
suppose you own a chain of five restaurants in
downtown Vancouver. as the manager, you want...
asked 1 hour ago -
Here are summary statistics for randomly selected weights of
newborn girls:
nequals=225x overbarxequals=28.7hg, sequals=7.5hg. Construct a...
asked 1 hour ago