Homework Answers
1) only lower the price level
2) sticky wages
Sticky prices
3) 7.807
4) the real interest rate on the loan is positive, because the $1000 you get back can buy more.
5) tend to spend more in investment.
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According to the neoclassical model, a contractionary monetary policy will Select...
A central back engages in tight monetary policy in order to prevent inflation from undermining economic...
A central back engages in tight monetary policy in order to prevent inflation from undermining economic growth. Shift the aggregate demand (AD) curve on the graph below to show the impact of this policy on the economy. Provide your answer below: Price Level Aggregate Supply Aggregate Demand Real GDP QUESTION 25 - 1 POINT A healthy economic climate usually involves some sort of market orientation at the making level. individual, or firm decision- Select the correct answer below: O macroeconomic...
1. 2. 3. 4. 5. QUESTION 9.1 POINT Which of the following is not an example...
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QUESTION 9.1 POINT Which of the following is not an example of an economic model Select the correct answer below: the production possibilities frontier O the demand and supply framework o the market price of a good o the flow of payments in the economy FEEDBACK QUESTION 10 . 1 POINT Which of the following are considered financial intermediaries Select the correct answer below: insurance companies O pension funds banks O All of the above....
1. List and explain the 3 tools of Federal Reserve Monetary Policy. 2. Explain how the...
1. List and explain the 3 tools of Federal Reserve Monetary Policy. 2. Explain how the Federal Reserve would use expansionary monetary policy to close a recessionary gap. Explain how the money supply, interest rate, investment spending, consumer spending, aggregate demand, real GDP, unemployment, and price level is affected. Illustrate this graphically below
1. Which of the following is not a property of the aggregate demand curve? It shows...
1. Which of the following is not a property of the aggregate demand curve? It shows the relationship between the overall price level and level consumption. It shows the price level on the vertical axis and output on the horizontal axis. The aggregate demand curve slopes downward. It shows the relationship between the overall price level and the level of total demand. 2. When the price level increases people: feel more wealthy. have the same real value of assets, regardless...
1. Answer the multiple-choice with the correct response. Select the correct answer. 2. In the space...
1. Answer the multiple-choice with the correct response. Select
the correct answer.
2. In the space given for an explanation, you may: (a) choose a
second-best answer and explain why it is second best. (b) choose
one of the incorrect answers and rewrite the question so that it is
correct.
on part 2 of each question is based on the quality of your answer.
You do not need to write a lot but it must be clear that you
understand...
answer every single picture QUESTION 5 Suppose James transfers $500 from his checking account to...
answer every single picture
QUESTION 5 Suppose James transfers $500 from his checking account to his savings account. As a result of this action, OM1 stays the same and M2 falls. M1 falls and M2 stays the same. OBoth M1 and M2 fall. OBoth M1 and M2 stay the same. We were unable to transcribe this image1 poi QUESTION 7 Suppose the required reserve ratio is 25%. Assuming that banks hold no excess reserves and consumers hold no cash, this...
Please explain the working as well. Thank you Suppose that you are running a business and...
Please explain the working as well.
Thank you
Suppose that you are running a business and you need some extra space for one year. Your bank offers you a loan of $100,000 at 0% Interest. You consider borrowing this amount, buying the building, using it for one year, and then selling the building to pay back the loan. Unfortunately, the economy in which you are operating is experiendng deflation at the rate of 10% per year. After one year, you...
Please limit your answer to a maximum of one short paragraph per question 1. The table...
Please limit your answer to a maximum of one short paragraph per question 1. The table on the right shows the most current government economic indicators. How much did the average living standards increase in the US in 2015. Year GDP in billions of current dollars Real GDP in billions of chained 2009 dollars US Population Estimates 2014 17,393.1 15,982.3 320,289,069 2015 18,036.6 16,397.2 322,761,807 Growth 3.7% 2.6% 0.8% Source: BEA Source: Census 2. Indicate if the following...
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...
3 ways to diversify retirement savings beyond stocks Reluctant to put more of your hard-earned money...
3 ways to diversify retirement savings beyond stocks Reluctant to put more of your hard-earned money aboard the roller coaster known as the stock market? Then it may be a good idea to diversify your retirement savings with other assets, which can reduce your overall risk. Here are three alternative investments that could help you accomplish retirement savings diversification outside the stock market. Just like any investment, each one comes with risks that should be carefully considered before making any...
A central back engages in tight monetary policy in order to prevent inflation from undermining economic growth. Shift the aggregate demand (AD) curve on the graph below to show the impact of this policy on the economy. Provide your answer below: Price Level Aggregate Supply Aggregate Demand Real GDP QUESTION 25 - 1 POINT A healthy economic climate usually involves some sort of market orientation at the making level. individual, or firm decision- Select the correct answer below: O macroeconomic...
1.
2.
3.
4.
5.
QUESTION 9.1 POINT Which of the following is not an example of an economic model Select the correct answer below: the production possibilities frontier O the demand and supply framework o the market price of a good o the flow of payments in the economy FEEDBACK QUESTION 10 . 1 POINT Which of the following are considered financial intermediaries Select the correct answer below: insurance companies O pension funds banks O All of the above....
1. List and explain the 3 tools of Federal Reserve Monetary Policy. 2. Explain how the Federal Reserve would use expansionary monetary policy to close a recessionary gap. Explain how the money supply, interest rate, investment spending, consumer spending, aggregate demand, real GDP, unemployment, and price level is affected. Illustrate this graphically below
1. Answer the multiple-choice with the correct response. Select
the correct answer.
2. In the space given for an explanation, you may: (a) choose a
second-best answer and explain why it is second best. (b) choose
one of the incorrect answers and rewrite the question so that it is
correct.
on part 2 of each question is based on the quality of your answer.
You do not need to write a lot but it must be clear that you
understand...
answer every single picture
QUESTION 5 Suppose James transfers $500 from his checking account to his savings account. As a result of this action, OM1 stays the same and M2 falls. M1 falls and M2 stays the same. OBoth M1 and M2 fall. OBoth M1 and M2 stay the same. We were unable to transcribe this image1 poi QUESTION 7 Suppose the required reserve ratio is 25%. Assuming that banks hold no excess reserves and consumers hold no cash, this...
Please explain the working as well.
Thank you
Suppose that you are running a business and you need some extra space for one year. Your bank offers you a loan of $100,000 at 0% Interest. You consider borrowing this amount, buying the building, using it for one year, and then selling the building to pay back the loan. Unfortunately, the economy in which you are operating is experiendng deflation at the rate of 10% per year. After one year, you...
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...
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