Homework Answers
Answer 53. Quantitative easing
reason- Due to Quantitative easing Fed creates money to stimulate economy with the help of monetary policy.
Answer 54. Fiscal policy
reason- Due to fiscal policy, government makes decisions regarding taxes and government Spending. Government uses revenue to spend the money.
Answer 55. Monetary policy
reason- With the help of monetary policy, centrak bank controls money supply therefore inflation and interest rate.
if it helps kindly upvote
Add Answer to:
QUESTION 53 When the central bank or the Fed enacts this, it creates money and then...
What condition led the Fed to begin using quantitative easing? a. Congress authorized the Fed to...
What condition led the Fed to begin using quantitative easing? a. Congress authorized the Fed to get involved in fiscal policy. b. Unemployment and inflation were both rising quickly, rendering traditional monetary policy unusable. c. The Fed could no longer reduce interest rates. d. Stagflation rendered open-market operations practically pointless because banks were neither buying nor selling bonds.
If the Fed increases the discount rate, then Key Bank will increase its reserves. decrease its...
If the Fed increases the discount rate, then Key Bank will increase its reserves. decrease its reserves. make more loans. A contractionary or tight monetary policy stimulates borrowing. reduces borrowing. lowers interest rates. Which of the following is an inaccurate statement about the banking system? Banks borrow from households in order to lend to investors. Banks are the critical link in the flow of capital from households to investors. Competition between private banks and the central bank is what limits...
In an economy where the money supply and aggregate demand have been decreased by the Central...
In an economy where the money supply and aggregate demand have been decreased by the Central Bank, you know that the Central Bank is using 答案选项组 a contractionary monetary policy. an expansionary monetary policy. a loose monetary policy. follow expansionary fiscal policy How does monetary policy affect the market? 答案选项组 Monetary policy has a more of an impact on consumption than investment. Monetary policy has a more of an impact on government spending than investment. Monetary policy has an indirect...
Question 1 (1 point) An open market purchase of T-bills by the Fed will: have no...
Question 1 (1 point) An open market purchase of T-bills by the Fed will: have no effect on the money supply. decrease the money supply. increase the money supply. O increase the amount of government bonds held at banks. Question 2 (1 point) Contractionary monetary policy _____ interest rates, causing aggregate demand to shift to the lowers; right Olowers; left O raises; right Oraises; left Which of the following aggregate demand - aggregate supply models illustrates the short-run effects of...
In Dec, 2018 the fed funds rate is 2.25-2.5% which is the rate that banks charge...
In Dec, 2018 the fed funds rate is 2.25-2.5% which is the rate that banks charge each other to borrow reserves overnight. The fed controls the supply of bank reserves by buying or selling Treasury Securities. (Buying treasuries raises the supply of bank reserves and therefore lowers the fed funds rate) It is also gradually undoing quantitative easing(QE) which means shrinking its balance sheet which has assets of 4Trillion! The fed had expanded its balance sheet by creating money to...
In Dec, 2018 the fed funds rate is 2.25-2.5% which is the rate that banks charge...
In Dec, 2018 the fed funds rate is 2.25-2.5% which is the rate that banks charge each other to borrow reserves overnight. The fed controls the supply of bank reserves by buying or selling Treasury Securities. (Buying treasuries raises the supply of bank reserves and therefore lowers the fed funds rate) It is also gradually undoing quantitative easing (QE) which means shrinking its balance sheet which has assets of 4Trillion! The fed had expanded its balance sheet by creating money...
6) Using money supply-money demand and the interest rate parity relationship, show how the central bank...
6) Using money supply-money demand and the interest rate parity relationship, show how the central bank can maintain fixed exchange rates in the face of changes in output. 7) Using the DD-AA model under fixed exchange rates, show the effects of monetary policy. What are the main results? 8) Using the DD-AA model under fixed exchange rates, show the effects of fiscal policy. What are the main results? 9) Using the DD-AA model under fixed exchange rates, show the effects...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to appreciate b)exports increase c)interest rates decrease d)demand for loanable funds decrease e)decreases merchandise trade deficit 2. When the Fed decreases money supply to combat inflation, it cuases: a)the price of the U.S. dollar to decrease b) capital to flow out of the US c)an increase in the merchandise trade deficit d)an increase in private spending e) a decrease in the interest rates 3. Which...
Which of the following is NOT consistent with tightening of monetary policy? A. A central bank...
Which of the following is NOT consistent with tightening of monetary policy? A. A central bank sells more government securities to banks. B. The country’s foreign currency may increase in value. C. Interest rates fall. D. Bank lending is reduced. E. Open-market operations may reduce banks’ supplies of funds and liquidity in a financial system. Monetary policy is preferred to fiscal policy as a _______ policy instrument because it can be adjusted more _________ than fiscal policy. A. short-term, quickly....
The European Central Bank embarked in 2015 on the so-called‘ quantitative easing’ already deployed by Japan,...
The European Central Bank embarked in 2015 on the so-called‘ quantitative easing’ already deployed by Japan, the US and the UK, after having already implemented many other extraordinary easing measures. These newer monetary policy instruments target longer-term interest rates than is the norm. Why might some accuse the ECB (justly or unjustly) of trying to prop up the euro zone economy at the expense of its trading partners? Explain thoroughly.
If the Fed increases the discount rate, then Key Bank will increase its reserves. decrease its reserves. make more loans. A contractionary or tight monetary policy stimulates borrowing. reduces borrowing. lowers interest rates. Which of the following is an inaccurate statement about the banking system? Banks borrow from households in order to lend to investors. Banks are the critical link in the flow of capital from households to investors. Competition between private banks and the central bank is what limits...
Question 1 (1 point) An open market purchase of T-bills by the Fed will: have no effect on the money supply. decrease the money supply. increase the money supply. O increase the amount of government bonds held at banks. Question 2 (1 point) Contractionary monetary policy _____ interest rates, causing aggregate demand to shift to the lowers; right Olowers; left O raises; right Oraises; left Which of the following aggregate demand - aggregate supply models illustrates the short-run effects of...
In Dec, 2018 the fed funds rate is 2.25-2.5% which is the rate that banks charge each other to borrow reserves overnight. The fed controls the supply of bank reserves by buying or selling Treasury Securities. (Buying treasuries raises the supply of bank reserves and therefore lowers the fed funds rate) It is also gradually undoing quantitative easing(QE) which means shrinking its balance sheet which has assets of 4Trillion! The fed had expanded its balance sheet by creating money to...
In Dec, 2018 the fed funds rate is 2.25-2.5% which is the rate that banks charge each other to borrow reserves overnight. The fed controls the supply of bank reserves by buying or selling Treasury Securities. (Buying treasuries raises the supply of bank reserves and therefore lowers the fed funds rate) It is also gradually undoing quantitative easing (QE) which means shrinking its balance sheet which has assets of 4Trillion! The fed had expanded its balance sheet by creating money...
6) Using money supply-money demand and the interest rate parity relationship, show how the central bank can maintain fixed exchange rates in the face of changes in output. 7) Using the DD-AA model under fixed exchange rates, show the effects of monetary policy. What are the main results? 8) Using the DD-AA model under fixed exchange rates, show the effects of fiscal policy. What are the main results? 9) Using the DD-AA model under fixed exchange rates, show the effects...
Most questions answered within 3 hours.
-
Hewtex Electronics manufactures two products, headsets and
electronic calculators, and sells them nationally to wholesalers
and...
asked 1 second from now -
Describe how to measure benefits, including specific examples of
clinical and financial benefits that can be...
asked 12 minutes ago -
Costs associated with the manufacture of miniature
high-sensitivity piezoresistive pressure transducers is $74,000 per
year. A...
asked 27 minutes ago -
Given the following information for Jane Cole complete schedule
D of 1040 through part III and...
asked 27 minutes ago -
Why doesn't a small piece of uranium go naturally into a chain
reaction?
A) A small...
asked 31 minutes ago -
Last year’s freshman class at Big State University totaled 5,324
students. Of those, 1,254 received a...
asked 40 minutes ago -
The transverse displacement of a stretched string from
equilibrium as a function of time and position...
asked 43 minutes ago -
Do a detailed SWOT analysis for a small Agribusiness company in
Brazil
asked 43 minutes ago -
Which two measures of excellence are often in
conflict/contradiction with each other (and therefore difficult to...
asked 42 minutes ago -
Which of the following factors does not
negatively impact operating cash flows?
Group of answer choices...
asked 45 minutes ago -
How
is the relative placement handled with the Interstate Compact
Placement of children?
asked 48 minutes ago -
Overall, the Miles Per Gallon for customers of MallState is
normally distributed around 34 MPG with...
asked 1 hour ago