Which of the following would cause the Fed to lower interest rates? A decrease in taxes...
Which of the following would cause the Fed to lower interest rates?
| A decrease in taxes |
| A decrease in imports |
| A decrease in investment |
| An increase in wealth |
| A decrease in saving |
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Which of the following would cause the Fed to lower interest
rates?
A decrease in taxes...
Question 25 (2.5 points) Which of the following would cause a downward shift in the consumption...
Question 25 (2.5 points) Which of the following would cause a downward shift in the consumption function? a tax decrease an increase in wealth a stock market crash a decrease in the price level expectations of higher future income Question 26 (2.5 points) According to supply-side economists, the by curve will shift to the caused AD; right; more investment AD; left; more saving AS; right; more investment AS; left; more saving money supply; right; lower interest rates Question 28 (2.5...
Which of the following will cause a decrease in aggregate demand?
Which of the following will cause a decrease in aggregate demand? Increase in government spending Decrease in discount rate increase in taxes the Fed buying government securities from the public
a. Which of the following events would likely cause the decrease in aggregate demand? Personal consumption...
a. Which of the following events would likely cause the decrease
in aggregate demand?
Personal consumption falls as workers become concerned about
future employment prospects.
Imports decrease due to increased foreign prices.
Gross investment increases as capital units become fully
utilized.
b. A decrease in aggregate demand is of policy concern due to
the increase in the:
unemployment rate.
productivity of workers.
price level.
c. Which policy action should the federal government enact?
Increase personal income tax rates
Decrease real...
13. If the Fed conducts Open Market Purchase, then: a. price of bonds increase, interest rates decrease and money supply...
13. If the Fed conducts Open Market Purchase, then: a. price of bonds increase, interest rates decrease and money supply decreases. b. price of bonds decrease, interest rates increase and money supply decreases. c. price of bonds increase, interest rates decrease and money supply increases. d. price of bonds decrease, interest rates decrease and money supply increases.
. Do you think the Fed should lower interest rates, raise interest rates or maintain interest...
. Do you think the Fed should lower interest rates, raise interest rates or maintain interest rates? Explain why you choose your stance on interest rates.
Suppose the Fed has decided to lower the Interest rate pald on excess reserves. The goal...
Suppose the Fed has decided to lower the Interest rate pald on excess reserves. The goal of this policy is to O decrease Investment and aggregate demand. increase investment and aggregate demand. O decrease investment and aggregate supply. increase investment and aggregate supply.
The Fed has recently conducted a number of policies aimed to lower interest rates. In fact,...
The Fed has recently conducted a number of policies aimed to lower interest rates. In fact, the federal funds rate, in an emergency decision, was decreased to a target range of 0- 0.25% and they are purchasing longer term securities in an attempt to lower other interest rates. Do you expect these changes to cause inflation at this time? Explain why/why not. You should explain what is happening to each component of AD in your answer
Compared with higher inflation rates, a lower inflation rate will (Increase or Decrease?) the after-tax real...
Compared with higher inflation rates, a lower inflation rate
will (Increase or Decrease?) the after-tax real
interest rate when the government taxes nominal interest income.
This tends to (Encourage or Discourage?) saving,
thereby (Increasing or Decreasing) the quantity of
investment in the economy and (Increasing or Decreasing) the
economy's long-run growth rate.
Attempts: Keep the Highest: /2 8. Inflation-induced tax distortions Jacques receives a portion of his income from his holdings of interest-bearing government bonds. The bonds offer a real...
Which of the following would cause the interest rates to increase in the near future The...
Which of the following would cause the interest rates to increase in the near future The government doubles the amount of money added to the economy. The economy starts to slide into a recession. Concern increases regarding the national security of the US (i.e. the risk associated with investing in the US economy). A large demographic shift occurs in which people retire and live off their savings (this will increase the time preference for consumption). Choice 1, 3, and 4...
The Fed controls interest rates to either tighten or loosen the economy. When the Feds are...
The Fed controls interest rates to either tighten or loosen the economy. When the Feds are needing to tighten the economy, they will raise the interest rates. When interest rates are changed, it sends a ripple effect through the entire financial market. When interest rates rise, cost of capital and borrowing increase. Consumers will borrow and spend less. This will lead to a slower economy and help to hedge inflation. However, the change in interest rates can affect the market...
Question 25 (2.5 points) Which of the following would cause a downward shift in the consumption function? a tax decrease an increase in wealth a stock market crash a decrease in the price level expectations of higher future income Question 26 (2.5 points) According to supply-side economists, the by curve will shift to the caused AD; right; more investment AD; left; more saving AS; right; more investment AS; left; more saving money supply; right; lower interest rates Question 28 (2.5...
a. Which of the following events would likely cause the decrease
in aggregate demand?
Personal consumption falls as workers become concerned about
future employment prospects.
Imports decrease due to increased foreign prices.
Gross investment increases as capital units become fully
utilized.
b. A decrease in aggregate demand is of policy concern due to
the increase in the:
unemployment rate.
productivity of workers.
price level.
c. Which policy action should the federal government enact?
Increase personal income tax rates
Decrease real...
Suppose the Fed has decided to lower the Interest rate pald on excess reserves. The goal of this policy is to O decrease Investment and aggregate demand. increase investment and aggregate demand. O decrease investment and aggregate supply. increase investment and aggregate supply.
Compared with higher inflation rates, a lower inflation rate
will (Increase or Decrease?) the after-tax real
interest rate when the government taxes nominal interest income.
This tends to (Encourage or Discourage?) saving,
thereby (Increasing or Decreasing) the quantity of
investment in the economy and (Increasing or Decreasing) the
economy's long-run growth rate.
Attempts: Keep the Highest: /2 8. Inflation-induced tax distortions Jacques receives a portion of his income from his holdings of interest-bearing government bonds. The bonds offer a real...
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