Homework Answers
Purchase of securities by the federal bank will increase money supply in the economy because buying of securities induce liquidity in the commercial banks which further use the liquidity to create credit in the economy. So interest rates will decline as more money will be supply then demand . Lower interest rates will increase investment. Investment will increase AD and hence real GDP.
So option D is correct
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Currently, output is substantially lower than potential output. Now the Fed buys securities, we would expect...
18 19 20 C) the economy naturally self-regulates so as to attain full employment at its...
18 19 20
C) the economy naturally self-regulates so as to attain full employment at its equilibrium D) the short-run aggregate supply (SRAS) curve is always vertical. 18) In the classical model, an increase in the unemployment rate 18 A) will likely be temporary B) will result in an increase in the price level if the reduction in output is caused by a change in aggregate demand C) is a signal of demand-pull inflation. D) will persist when the reduction...
Question 7 Suppose the legislature of Youngland voted to impose a protective tariff on microprocessor chips....
Question 7 Suppose the legislature of Youngland voted to impose a protective tariff on microprocessor chips. Which of the following would be true in the short run? There will be a decrease in microprocessor chip production in Youngland. There will be a decrease in supply of microprocessor chips in Youngland. There will be an increase in microprocessor chip production by foreign nations. I only. II only. III only. I and III only. II and III only. Question 13(Multiple Choice Worth...
Answer questions 10 through 13 with reference to Figure 1. w bis 0225 l 3 .sogo...
Answer questions 10 through 13 with reference to Figure 1. w bis 0225 l 3 .sogo Figure 1 gabond to non ll "10 non hann o LIRANJ Real Interest Rates (%) Enter • "A" if arrow A represents the • "B" if arrow B represents the Aggregate Output ($) • "N" if the impact of the development mentioned is not represented in the diagram. 10. Adoption of a large debt-financed government infrastructure investment program. 11. Onset of a serious recession...
During a recessions caused by an aggregate demand shock, we would expect inflation to __________ and unemployment to _...
During a recessions caused by an aggregate demand shock, we would expect inflation to __________ and unemployment to ____________. a. fall, fall b. rise, rise c. fall, rise d. rise, fall During the Great Depression there was no deposit insurance and banking panics occurred. A bank panic happens when a. banks fear that loans will be too risky and sharply cut back lending b. many depositors lose confidence and fear that loan defaults will endanger their deposits c. banks fear...
THERE ARE 20 total QUESTIONS PLEASE ANSWER ALL OF THEM QUESTION 1 One way to reduce the recessio...
THERE ARE 20 total QUESTIONS PLEASE ANSWER ALL OF THEM
QUESTION 1 One way to reduce the recessionary gap through fiscal policy is to O increase government purchases. increase taxes. O decrease transfer payments. decrease the MPC QUESTION 2 Which of the following is true of open-market operations? It involves the purchase and sale of government securities by the central bank. O it involves the purchase and sale of stocks and bonds by private banks. It involves measures taken by...
2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely...
2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely to save, that is, sell a financial asset. B. more likely to save, that is, sell a financial asset. C. less likely to save, that is, purchase a financial asset. D. more likely to save, that is, purchase a financial asset. I. In 2. If commercial banks hold all their assets in the form of required reserves: A. only they will be able to...
QUESTION 10 Consider the monthly data, including the estimates for March 2020, and the information in...
QUESTION 10
Consider the monthly data, including the estimates for March
2020, and the information in the articles. Which of the following
is the best analysis of and prediction for the money market in the
U.S. economy for the next few months?
a.
Shortages are causing panic buying by households, which has
increased money demand. Lenders are increasing their lending to
keep up with the needs of households and businesses. Money demand
is increasing more than money supply.
b.
Shortages...
1. A self-employed woman marries the man she has been paying to do her accounting. After...
1. A self-employed woman marries the man she has been paying to do her accounting. After they marry they decide there is no point continuing to write a check to him since they are now one-household. What effect does this have on GDP? Select one: a. None, since only their legal status changes and the same amount of productive activity is being done. b. GDP decreases because his accounting services were an intermediate good and are now a final good....
need it as soo as posible please, thanks Macroeconmics received a 39 increase in your bominal...
need it as soo as posible please, thanks
Macroeconmics
received a 39 increase in your bominal wage and over the year, ination ran about 30) Suppose you received a Which of the following is nie? a) your nominal wage fell b) your real wage feil c) although your nominal wage fell your real waye d) both nominal and real wages increased 31) The actual rate of unemploy rate of employment will be greater than the naturale actual output in weater...
1. When it comes to financial matters, the views of Aristotle can be stated as:...
1. When it comes to financial matters, the views of Aristotle can be stated as: a. usury is nature’s way of helping each other. b. the fact that money is barren makes it the ideal medium of exchange. c. charging interest is immoral because money is not productive. d. when you lend money, it grows more money. e. interest is too high if it can’t be paid back. 2. Since 2008, when the monetary base was about $800 billion,...
18 19 20
C) the economy naturally self-regulates so as to attain full employment at its equilibrium D) the short-run aggregate supply (SRAS) curve is always vertical. 18) In the classical model, an increase in the unemployment rate 18 A) will likely be temporary B) will result in an increase in the price level if the reduction in output is caused by a change in aggregate demand C) is a signal of demand-pull inflation. D) will persist when the reduction...
Answer questions 10 through 13 with reference to Figure 1. w bis 0225 l 3 .sogo Figure 1 gabond to non ll "10 non hann o LIRANJ Real Interest Rates (%) Enter • "A" if arrow A represents the • "B" if arrow B represents the Aggregate Output ($) • "N" if the impact of the development mentioned is not represented in the diagram. 10. Adoption of a large debt-financed government infrastructure investment program. 11. Onset of a serious recession...
THERE ARE 20 total QUESTIONS PLEASE ANSWER ALL OF THEM
QUESTION 1 One way to reduce the recessionary gap through fiscal policy is to O increase government purchases. increase taxes. O decrease transfer payments. decrease the MPC QUESTION 2 Which of the following is true of open-market operations? It involves the purchase and sale of government securities by the central bank. O it involves the purchase and sale of stocks and bonds by private banks. It involves measures taken by...
2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely to save, that is, sell a financial asset. B. more likely to save, that is, sell a financial asset. C. less likely to save, that is, purchase a financial asset. D. more likely to save, that is, purchase a financial asset. I. In 2. If commercial banks hold all their assets in the form of required reserves: A. only they will be able to...
QUESTION 10
Consider the monthly data, including the estimates for March
2020, and the information in the articles. Which of the following
is the best analysis of and prediction for the money market in the
U.S. economy for the next few months?
a.
Shortages are causing panic buying by households, which has
increased money demand. Lenders are increasing their lending to
keep up with the needs of households and businesses. Money demand
is increasing more than money supply.
b.
Shortages...
need it as soo as posible please, thanks
Macroeconmics
received a 39 increase in your bominal wage and over the year, ination ran about 30) Suppose you received a Which of the following is nie? a) your nominal wage fell b) your real wage feil c) although your nominal wage fell your real waye d) both nominal and real wages increased 31) The actual rate of unemploy rate of employment will be greater than the naturale actual output in weater...
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