24) Great Recession and Great Depression were similar except
Stock Market crash |
High Unemployment |
Bad loans by banks |
Role of the Fed |
25) The various kinds of automatic stabilizers are:
Increased Defense spending |
All of them |
Expansionary Monetary Policy |
Taxes and Transfer payments |
29) Internet Revolution in the 1990’s was an example of
Negative Supply shock |
Positive demand shock |
Negative Demand shock |
Positive Supply shock |
33) To close a recessionary gap, the Fed would
increase the money supply |
increase interest rates. |
decrease the money supply. |
sell bonds. |
a) "D"
role of the Fed, in the later recession the Fed played very active role, in the first it was dormant.
b) "D"
Tax and transfer payments are example of various stabilizer.
c) "D"
internet revolution is an example of positive supply shock.
d) "A"
The Fed would decrease the money supply and reduce the interest rate.
24) Great Recession and Great Depression were similar except Stock Market crash High Unemployment Bad loans...
24) Great Recession and Great Depression were similar except Stock Market crash High Unemployment Bad loans by banks Role of the Fed 25) The various kinds of automatic stabilizers are: Increased Defense spending All of them Expansionary Monetary Policy Taxes and Transfer payments 29) Internet Revolution in the 1990’s was an example of Negative Supply shock Positive demand shock Negative Demand shock Positive Supply shock 33) To close a recessionary gap, the Fed would increase the money supply increase interest...
Which of the following recessionary periods was not caused by an AD shock Great Depression 1973-75 recession 1981-82 recession Great Recession During the Great Depression, the economy experienced inflation disinflation deflation hyper-inflation During the Great Depression, output growth increased at a slower than normal rate was negative for 4 quarters before turning positive was negative for 4 years before turning positive didn't decline as much as during the Great Recession While there is no "standard" for distinguishing an economic depression...
Which of the following statements is not correct? A. The Fed was created in 1913 to provide central banking functions. B. The Fed is a central bank of the U.S.; it plays a role in regulating banks; and it is responsible for conducting the nation's monetary policy C. The Fed makes loans to any qualified business that requests one. D. Federal Open Market Committee makes decisions regarding monetary policy. QUESTION 56 Which of the following statements is not true? A....
the economy is experiencing a recession and high unemployment a. Use an AD-AS model together with the Fed Funds market to represent ther short ran equilibrium in b. What types of monetary policy (i.e.. expansionary or restrictive) should the Fed implement? c. In implementing the policy you suggest. which actions (please give at least two actions) should the Fed take to achieve this policy? Explain how t he y policy would address this problem and the consequence of the monetar...
When easy money policy is used persistently by the Fed, it eventually results in: reduced unemployment. excessive savings. high inflation. the exhaustion of excess reserves. In 2016, Greece faced another set of hurdles in its ongoing saga of managing its debt. In order for Greece to maintain its obligations under the IMF and European Central Bank bailout packages, it must continue to cut government spending, particularly pensions that have put a strain on the budget. Greece's leaders, meanwhile, have argued...
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...
Study Guide for Exam Four. Cumulative Material You Want To Know. Module 27. Aggregate Demand. 1. Know the difference between what can cause shifts in the aggregate demand curve. 2. Know what causes movements along the aggregate demand curve. Module 28. Aggregate Supply. 1. What factors cause the short run aggregate supply curve to shift? 2. Know what causes movements along the short run aggregate supply curve. 3. Be able to define and explain the long-run aggregate supply curve. Potential...
00000000 LELOGUCCO in the short run unemployment and output are pretty tightly linked According Okun's Lew a) One extra point of unemployment costs two percent of GOT b) Two extra points of unemployment costs three percent of GDP c) Three extra point of unemployment costs mine percent of OOP d) Five extra points of unemployment costs five percent of GDP The shadow banking System nearly died in 2002 Then the system was 20-years old it had grown because of a...
1. To stimulate economic activity during a severe recession, the strongest appropriate fiscal policy is: a. an increase in taxes and/or an increase in government spending b. an increase in taxes and/or a decrease in government spending! c. a decrease in taxes and/or an increase in government spending d. a decrease in taxes and/or a decrease in government spending e. a decrease in government purchases and/or a decrease in transfer payments 2. An increase in income tax rates: a. makes...
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...