An increase in the money supply can typically affect the economy with a lag of: 2...
| An increase in the money supply can typically affect the economy with a lag of: | |||||||||
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| When a negative shock to aggregate demand occurs, the inflation rate will: | |||||||||
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| How can the Fed offset a positive shock to aggregate demand? | |||||||||
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Homework Answers
1. 6 to 18 months - is correct
2. Decrease - is correct
3. Decrease the growth rate of money supply. - is correct
Add Answer to:
An increase in the money supply can typically affect the
economy with a lag of:
2...
1.What could the Federal Reserve have done to fight the Great Depression? a.Increase the money supply...
1.What could the Federal Reserve have done to fight the Great Depression? a.Increase the money supply to reduce the interest rate. b.Increase the money supply to raise the interest rate. c.Decrease the money supply to reduce the interest rate. d.Decrease the money supply to raise the interest rate. 2. How could the government have used fiscal policy to fight the Great Depression? a.Reduce taxes, raise transfers, raise government purchases. b.Reduce taxes, reduce transfers, reduce government purchases. c.Raise taxes, reduce transfers,...
Use the graph to answer the questions below: Assume that the economy is initially at point...
Use the graph to answer the questions below:
Assume that the economy is initially at point X. Suppose a fall
in consumer spending growth moves the economy to point Z. In
theory, the government can
(increase/decrease)?
aggregate demand by
(2%, 3%, 5%, 8%, 10%)?
to steer the economy back to the original equilibrium of point
X. Suppose the economy is at point W. In theory, the government
can
(increase/decrease)?
aggregate demand by
(2%, 3%, 5%, 8%, 10%)?
to steer the...
If the Federal reserve increases the supply of money: A. there will be an increase in...
If the Federal reserve increases the supply of money: A. there will be an increase in government spending. B. there will be a decrease in aggregate demand. C. there will be no effect on aggregate demand. D. there will be a decrease in interest rates. E. there will be an increase in interest rates.
Suppose the Fed doubles the growth rate of the quantity of money in the economy. In...
Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following? Check all that apply. The price level The inflation rate The quantity of physical capital The size of the labor force Suppose the economy produces real GDP of $70 billion when unemployment is at its natural rate. Use the purple points (diamond symbol) to plot the economy's long-run aggregate supply...
Which of the following are ways that the Federal Reserve influences the U.S. economy through its monetary policies?
3. How the Fed influences the money supply Which of the following are ways that the Federal Reserve influences the U.S. economy through its monetary policies? Check all that apply. O Using open-market operations to sell securities, the Fed can increase the money supply, thereby increasing interest rates and subsequently reducing the rate of inflation. O Using open-market operations to buy securities, the Fed can increase the money supply, thereby increasing interest rates, which would cause security prices to decrease. Using open-market operations to sell...
An increase in the price level will A) shift the aggregate demand curve to the left.
7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand curve to the right. C) move the economy up along the aggregate demand curve. D) move the economy down along the aggregate demand curve. 8) Expansionary monetary policy involves A) reducing money supply and lowering taxes B) increasing money supply to decrease interest rate C) increasing government spending and cutting money supply D) increasing the interest rate and increasing taxes 9) Long-run macroeconomic equilibrium occurs when A) aggregate demand...
Suppose the Fed doubles the growth rate of the quantity of money in the economy
Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following? Check all that apply. The size of the labor force The inflation rate The price level The level of technological knowledge Suppose the economy produces real GDP of $30 billion when unemployment is at its natural rate. Use the purple points (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve on the graph. Suppose the...
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...
A weakness of the neoclassical economic view is that it: can overlook the long-term causes of...
A weakness of the neoclassical economic view is that it: can overlook the long-term causes of economic growth like the existing natural rate of unemployment even when the economy is at potential GDP. focuses on the long-term factors for economic growth and not the short-term causes of economic growth such as why unemployment fluctuates up and down over a few years. can overlook the efficiency of the market economy in self-correcting in the long-run. Keynes' Law says that demand creates...
1. 2. If the Fed wants to reduce the money supply through open market operations, it...
1.
2.
If the Fed wants to reduce the money supply through open
market operations, it will
Select the correct answer below :
sell bonds
buy bonds
Oreduce the required reserves ratio
reduce the discount rate
3.
A growing debt/GDP ratio could mean that, all else the
same,
Select the correct answer below:
the government is running large budget deficits
the government is paying down the debt
government expenditures are less than tax revenues.
the economy is in a growth...
Use the graph to answer the questions below:
Assume that the economy is initially at point X. Suppose a fall
in consumer spending growth moves the economy to point Z. In
theory, the government can
(increase/decrease)?
aggregate demand by
(2%, 3%, 5%, 8%, 10%)?
to steer the economy back to the original equilibrium of point
X. Suppose the economy is at point W. In theory, the government
can
(increase/decrease)?
aggregate demand by
(2%, 3%, 5%, 8%, 10%)?
to steer the...
1.
2.
If the Fed wants to reduce the money supply through open
market operations, it will
Select the correct answer below :
sell bonds
buy bonds
Oreduce the required reserves ratio
reduce the discount rate
3.
A growing debt/GDP ratio could mean that, all else the
same,
Select the correct answer below:
the government is running large budget deficits
the government is paying down the debt
government expenditures are less than tax revenues.
the economy is in a growth...
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