Bitcon's monetary growth rule, which sets a strict upper limit on the money supply, is a...
Bitcon's monetary growth rule, which sets a strict upper limit on the money supply, is a version of the Taylor Rule. True or False?
Homework Answers
Bitcoins monetary growth rule, which sets a strict upper limit on the money supply is done so to protect the bitcoin against inflation.
Taylor rule also suggests that setting a high enough nominal interest rate to control against inflation. high nominal interest rate will effectively reduce the money supply to control inflation,
hence the statement is true.
Give a thumbs up to the answer.
Add Answer to:
Bitcon's monetary growth rule, which sets a strict upper limit
on the money supply, is a...
Which of the statements is true about monetary policy? a) Decrease in the money supply lowers...
Which of the statements is true about monetary policy? a) Decrease in the money supply lowers short-term interest rates and encourage investment and consumption demand. b) Monetary policy is determined by the Congress. c) Higher money supply does not have a permanent effect on economic activity because it results only in a higher price level in the long run. d) Monetary policy has the most immediate impact on the economy, but implementation of such a policy is usually slow.
The following problem illustrates Milton Friedman's money growth rule which is a center piece of the...
The following problem illustrates Milton Friedman's money growth rule which is a center piece of the Monetarist thinking of macroeconomics. Suppose the economy is given by the following: Production Function: Yt = 10 Kt 0.4(Lt Et) 0.6 Consumption Function: Ct = 0.8 Yt Depreciation rate: 8% (i.e. δ = 0.08). Population growth: 2% (i.e. n= 0.02). Technological growth: 2% (i.e. g= 0.02). Money demand: ( ?? ?? ) ? = ? ?(?? ) = 2?? . In addition, suppose that...
Maintaining the growth of the money supply at a constant rate is an example of a...
Maintaining the growth of the money supply at a constant rate is an example of a A. discretionary policy. B. the gold standard. C. an inflation targeting rule. D. a money demand rule. E. a money targeting rule.
Maintaining the growth of the money supply at a constant rate is an example of a...
Maintaining the growth of the money supply at a constant rate is an example of a O A. the gold standard. OB. an inflation targeting rule. O C. a money targeting rule. OD. discretionary policy. O E. a money demand rule.
a. What does the Taylor Rule imply that monetary policymakers should due to the Federal Funds...
a. What does the Taylor Rule imply that monetary policymakers should due to the Federal Funds Rate under the following scenarios? Please explain your answer using the information in the Taylor Rule. (Hint: you may want to start with the equation for the Taylor Rule.) The Taylor Rule: 1. Unemployment rises due to a recession. 2. An oil price shock causes the inflation rate to rise by 1% and output to fall by 1%. 3. The Fed decreases its target...
In the money market diagram, the supply curve of money is vertical because the quantity of...
In the money market diagram, the supply curve of money is vertical because the quantity of money supplied increases only if the Fed increases the money supply. true false An extraordinarily high rate of inflation in Germany after the end of World War I likely contributed to the rise of Nazism and World War II. true false If P denotes the price of goods and services measured in terms of money, then 1/P represents the value of money and an...
If you were the Federal Reserve chairman, which monetary policy would you advise the federal government...
If you were the Federal Reserve chairman, which monetary policy would you advise the federal government to adopt? Explain why. o Return to the classical gold standard o A gold price targeting policy o A monetary rule (i.e., increase the M2 money supply at a steady rate equal to the long-term real GDP growth rate, and allow interest rates to fluctuate without interference. o Price inflation target, i.e., set a maximum price inflation target, based on the Consumer Price Index...
An increase in the money supply can be caused by which of the following monetary tools?...
An increase in the money supply can be caused by which of the following monetary tools? Print more money Increase in government spending Decrease in taxes Purchase of Bonds by the federal reserve When Discussing wages, incomes and interest rates you always want to focus on the ----- Nominal Value Real value both are needed none of the above
Of the following, which is NOT a monetary policy rule the Fed could follow? A. a...
Of the following, which is NOT a monetary policy rule the Fed could follow? A. a k-percent rule B. a money targeting rule C. a gold price targeting rule D. an unemployment rate targeting rule E. an inflation targeting rule.
The following graph shows the money market in a hypothetical economy. The money supply is currently...
The following graph shows the money market in a hypothetical economy. The money supply is currently $200 billion, so the equilibrium interest rate is 0.5%, as shown by the grey star labeled A. Money Supply 0.9 0.8 New MS 0.7 .+ 0.6 INTEREST RATE (Percent) 0.5 Money Demand 0.4 0.3 0.2 0.1 0 800 100 200 300 400 500 600 700 QUANTITY OF MONEY (Billions of dollars) True or False: According to the Keynesian view of the economy, this economy...
Maintaining the growth of the money supply at a constant rate is an example of a O A. the gold standard. OB. an inflation targeting rule. O C. a money targeting rule. OD. discretionary policy. O E. a money demand rule.
Of the following, which is NOT a monetary policy rule the Fed could follow? A. a k-percent rule B. a money targeting rule C. a gold price targeting rule D. an unemployment rate targeting rule E. an inflation targeting rule.
The following graph shows the money market in a hypothetical economy. The money supply is currently $200 billion, so the equilibrium interest rate is 0.5%, as shown by the grey star labeled A. Money Supply 0.9 0.8 New MS 0.7 .+ 0.6 INTEREST RATE (Percent) 0.5 Money Demand 0.4 0.3 0.2 0.1 0 800 100 200 300 400 500 600 700 QUANTITY OF MONEY (Billions of dollars) True or False: According to the Keynesian view of the economy, this economy...
Most questions answered within 3 hours.
-
The mean cost of domestic airfares in the United States rose to
an all-time high of...
asked 8 minutes ago -
1.Magazine Luiza is a Brazilian retail chain for consumer
electronics. The company currently has 100 stores...
asked 6 minutes ago -
What is the molarity of ZnCl2 that forms when 25.0 g of zinc
completely reacts with...
asked 8 minutes ago -
For independent X and Y, we have probability density function
for them where pdf of X...
asked 19 minutes ago -
The decomposition of SO2Cl2 is first order in SO2Cl2 and has a
rate constant of 1.42...
asked 15 minutes ago -
How do I convert from volume percent to mole percent in the
distillation lab? ethy acetate...
asked 22 minutes ago -
8. An air-plane has an effective wing surface area of 14.0 m²
that is generating the...
asked 23 minutes ago -
A railroad worker was a person who worked on setting and moving
railroad tracks. In securing...
asked 21 minutes ago -
using RECURSIVE Functions in Java, create a public static String
doubleLetters (String word)
For ex) that...
asked 28 minutes ago -
With a $16 Trillion national ebt, and projected annual budget
eficits in excess of $1 Trillion...
asked 42 minutes ago -
A machine shop owner wishes to assign each of three machinists
(labeled 1, 2, and 3)...
asked 56 minutes ago -
Regarding language development, which of the following
statements is FALSE?
Babies are able to cry from...
asked 56 minutes ago