Homework Answers
surplus and the sale of securities in the open market, a higher discount rate, and higher reserve requirements.
this will reduce the money in the market and also increase borrowings cost, resulting in demand reduction
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If severe demand-pull inflation was occurring in the economy, proper government policies would involve a government:...
If the Fed was trying to reduce demand-pull inflation, it might
If the Fed was trying to reduce demand-pull inflation, it might A. sell government securities, lower reserve requirements and lower the discount rate. B. sell government securities, raise reserve requirements and raise the discount rate. C. sell government securities, lower reserve requirements and raise the discount rate. D. buy government securities, lower reserve requirements and raise the discount rate.
Question 43 3.2 pts To grow the economy to pull out of a recession, the Federal...
Question 43 3.2 pts To grow the economy to pull out of a recession, the Federal Reserve should engage in an open market purchase of government securities. True False
Question 12 (5 points) The Government's fiscal policy options for ending severe demand-pull inflation include: a)...
Question 12 (5 points) The Government's fiscal policy options for ending severe demand-pull inflation include: a) Reducing government spending, increasing interest rates, or both. b) Increasing interest rates, reducing government spending, or both. c) Buying bonds on the open market. d) Increasing taxes, raising interest rates, or both. e) Reducing government spending, increasing taxes, or both.
IS-LM What combination of policies would best reduce inflation? a) Increase taxes, sell government bonds b)...
IS-LM What combination of policies would best reduce inflation? a) Increase taxes, sell government bonds b) Decrease taxes, buy government bonds c) Decrease taxes, lower the reserve ratio d) Decrease government spending, lower the discount rate e) Increase government spending, raise the discount rate Use the IS-LM model. Your policy instruments are: Taxes, Government Spending, and the Money Supply. Describe a policy or set of policies that achieve the following objectives. Your answer should include a diagram to show how...
The government can reduce inflation with the help of both fiscal and monetary policy.
The government can reduce inflation with the help of both fiscal and monetary policy. An effective combination of these policies to reduce inflation would be to _______ and _______ Increase taxes; lower the reserve requirement ratio Increase taxes; sell government bonds Decrease taxes; buy government bonds Decrease government spending; lower discount rate
Which of the following can cause demand-pull inflation if the economy is currently in equilibrium at full-employment GDP?
Which of the following can cause demand-pull inflation if the economy is currently in equilibrium at full-employment GDP? An increase in the labour participation rate A reduction in government spending A decrease in real wages An increase in net exports An increase in the company income tax rate.
An economy is initially at potential output, in the long run, expansionary monetary policy is expected:...
An economy is initially at potential output, in the long run, expansionary monetary policy is expected: a) not to affect output in the long run b) not to affect output in either the short run or the long run c) to affect output, but only in the long run d) to affect output in both the short run and the long run Which of the following monetary policies likely decreases aggregate demand and, in the short run, output? a) A...
hich one of these policies should the Fed engage in if unemployment is 12% and inflation...
hich one of these policies should the Fed engage in if unemployment is 12% and inflation is 1.0%? Select one: a. Issue new government bonds and increase government borrowing b. Lower income and corporate taxes c. Increase government spending on infrastructure d. Buy bonds through an Open Market Operation e. Target a higher Federal Funds Rate
answer please 25. A bank borrows money from another bank on an overnight basis to meet...
answer please
25. A bank borrows money from another bank on an overnight basis to meet reserve requirements in the: a. stock market. b. bond market. c. Federal funds market. d. U.S.Treasury bill market. 26. Fiscal policy in the United States is the responsibility of the: a. US Treasury b. Federal Reserve c. Internal Revenue Service d. US Congress and Administration 27. Monetary policy in the United States is the responsibility of the: b. Federal Reserve a. US Treasury c....
1. Show graphically how the economy would change if the government conducts a fiscal expansion considering...
1. Show graphically how the economy would change if the government conducts a fiscal expansion considering the classical model with misperceptions. Show how ideology matters when deciding how large of a policy one should conduct. 2. Show graphically and discuss if the Federal Reserve should be honest, say nothing, or lie if they are going to conduct an open market purchase. What about with an open market sale? 3. Discuss conceptually what happens to GDP if unemployment increases 2% from...
Question 43 3.2 pts To grow the economy to pull out of a recession, the Federal Reserve should engage in an open market purchase of government securities. True False
Question 12 (5 points) The Government's fiscal policy options for ending severe demand-pull inflation include: a) Reducing government spending, increasing interest rates, or both. b) Increasing interest rates, reducing government spending, or both. c) Buying bonds on the open market. d) Increasing taxes, raising interest rates, or both. e) Reducing government spending, increasing taxes, or both.
IS-LM What combination of policies would best reduce inflation? a) Increase taxes, sell government bonds b) Decrease taxes, buy government bonds c) Decrease taxes, lower the reserve ratio d) Decrease government spending, lower the discount rate e) Increase government spending, raise the discount rate Use the IS-LM model. Your policy instruments are: Taxes, Government Spending, and the Money Supply. Describe a policy or set of policies that achieve the following objectives. Your answer should include a diagram to show how...
answer please
25. A bank borrows money from another bank on an overnight basis to meet reserve requirements in the: a. stock market. b. bond market. c. Federal funds market. d. U.S.Treasury bill market. 26. Fiscal policy in the United States is the responsibility of the: a. US Treasury b. Federal Reserve c. Internal Revenue Service d. US Congress and Administration 27. Monetary policy in the United States is the responsibility of the: b. Federal Reserve a. US Treasury c....
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