Other than using the Open Market Committee, identify at least 2 ways in which the Fed can decrease the money supply. I am looking for the method and what bet decrease the money supply For the the press ACT PC or ALT

Other than using the Open Market Committee, identify at least 2 ways in which the Fed can decrease the money supply. I am looking for the method and what bet decrease the money supply For the the press ACT PC or ALT

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter15: The Federal Reserve System And Monetary Policy

Section: Chapter Questions

Problem 15AA

See similar textbooks

Related questions

Q: Despite the fact that personal possession of currency is not allowed by U.S. prisons, in reality,…

A: 1) Fiat money - it is not backed by any commodity and is declared as a legal tender by government…

Q: Below table contains a data sample where X is the independent, and Y the dependent variable. Using…

A: A linear regression equation explains the linear relationship between the dependent variable (Y) and…

Q: 44. In a perfectly competitive market for a good with a downward sloping demand curve and an upward…

A: The measure that depicts benefits or costs that are not being not received or incurred financially…

Q: Digital Tech Dynamics purchased a new quality inspection system for $550,000. The estimated salvage…

A: To determine the minimum trade-in value necessary now to make the president's replacement…

Q: You have a bond that pays $125 per year in coupon payments. Which of the following would result in…

A: In the world of financial instruments, the pricing of bonds is an empirical issue. Each bond issued…

Q: Given the following data: R = $1.00/100 F = $1.00/130 ¡us = 10% If the interest parity condition is…

A: The interest rate parity condition states that the difference in interest rates between two…

Q: Bob has made the following table to compute the finance charge for his March credit card bill. Bob…

A: The interest rate on credit card will be computed as the Annual Percentage Rate (APR) of charge. The…

Q: For the cash flows shown below, determine the present worth at year 0 at i=6% per year. 11 $3500…

A: In the cash flow diagram, the annual payment start at the end of year 2, and there is uniform…

Q: BC Junction purchased some embroidering equipment for their Denver facility 3 years ago for $15,000.…

A: MACRS (Modified Accelerated Cost Recovery System) is a method of depreciation used for tax purposes…

Q: Question 3 Judge Mark Griffiths finds that Moodle is a relentless and predatory monopolist. Judge…

A: Monopoly: monopoly refers to a situation where a single firm or entity controls the entire market…

Q: The use of monetary policy is highly debated among classical and Keynesian economists. Where do they…

A: Classical economics focuses on the idea that markets work best when left alone, without government…

Q: substantially lower price for a software upgrade than for the initial purchase of the software. This…

A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…

Q: Figure 3-19 Price Refer to Figure 3-19. The total gains from trade, representing both producer and…

A: Equilibrium is where the demand curve intersects the Supply curve. Consumer surplus is the area…

Q: Which combination of policies is possible? Select one: a. exchange rate target, interest rate…

A: It is impossible to have the following three. The impossible trinity is : a fixed foreign exchange…

Q: As you have learned consumer expectationsLinks to an external site. are a major driver of the short…

A: ***Since the student has not provided the external links, hence, the expert is required to solve the…

Q: Calculate the total change in aggregate spending if investment decreases by $250 billion and the…

A: We are given:-- Reduction in investment= $250 billion MPC= 0.9

Q: Percent of Income 100 + 80- 60- 40+ 20- DQ an Octoa. O a to d. Od to a. Ob toe. 2 36 40 60 Percent…

A: The Lorenz curve is a graphical representation of the distribution of income or of wealth.

Q: Consider first the goods market model with constant investment that we saw in Chapter 3. Consumption…

A: IS curve consists of all those points on which goods market is in equilibrium. Equation of IS curve:…

Q: When Adam Smith talked about “the invisible hand” he argued that: High transaction costs normally…

A: Adam Smith's concept of the invisible hand suggests that the pursuit of self-interest by way of…

Q: According to following diagrams determine the sensitivity parameters of Okun's and Phillips…

A: Okun's Law is an empirical relationship between changes in the unemployment rate and real GDP. It…

Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for 6 years…

A: We have given two different streams of cash flow- The first stream of cash flow is the quarterly…

Q: The economy has grown by 4% per year over the past 30 years. During the same period, the labor force…

A: In economics, the growth rate refers to the percentage change in a variable over a period of time.…

Q: With the economy changing from a farm/agricultural based economy to industrial based explain what…

A: The transition from a farm/agricultural-based economy to an industrial-based one had significant…

Q: 20 years later, Alex is has $1,000,000 in his investment account. He plans to spend $200,000 each…

A: Amount in account = $1,000,000 The amount he will spend each year =$200,000 Interest = 10%

Q: Suppose Clinton decides to use $7,500 currently held as savings to make a financial investment. One…

A: There are two methods of making a financial investment, i.e, through bonds and through stocks. When…

Q: Suppose Amari operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly…

A: Perfect competition is a market structure in which there are many buyers and sellers, and no…

Q: K 0 1 2 3 4 5 7 8 9 10 11 L 20 20 20 20 20 20 20 20 20 20 20 20 Q 0 50 150 300 400 450 475 475 450…

A: Law of diminishing returns states that returns in terms of output with increase in input decreases.…

Q: 9. The diagram below shows a firm's short-run cost and revenue curves. (It operates under monopoly…

A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…

Q: 1. Fill in the missing values in the table which represents the costs of a firm: Quantity TC FC VC…

A: Note : As you have posted multiple questions. But as per the policy we are allowed to answer the…

Q: The shape of a firm's long-run average cost curve depends on how costs vary with scale of operation.…

A: A firm's or company's entire production process is a synthesis of numerous costs, the ideal quantity…

Q: 3. Maximize the following total revenue TR and total profit functions by i. finding the critical…

A: First order condition for maximization is to find critical value by setting first derivative equal…

Q: A housewife bought a brand new washing machine costing php 15,000 if paid in cash. however, she can…

A: Given:Loan amount (PV) = Php 15,000Yearly payment at the beginning of the year (PMT) = ?Interest…

Q: Bonnie and Clyde are working together. Suppose that their total profits are 170H, where H is the…

A: Given the utility functions: UB(CB,H) = CB - 0.01H2 UC(CC,H) = CC - 0.04H2 Total profits = 170H

Q: What factors determine whether the national debt is a cause for immediate concern?

A: The entire sum of money that a government owes its creditors, which might be both people and other…

Q: recent government study reported that a college degree is worth an extra Php 33753 per quarter…

A: Future worth is the value of the investment at the end of the fixed time. Present worth is the value…

Q: After this latest policy, output is now at (A) O a. (A) Y3; (B) the same; (C) appreciation O b. (A)…

A: ***Since the student has not provided the complete question, hence, the expert can only solve the…

Q: Name at least one fiscal policy and one monetary policy the federal government enacted in response…

A: Fiscal policy: The use of government spending and taxation policies to influence economic activity,…

Q: Which do you think would be more harmful to the economy—an inflation rate that averages 5 percent a…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Consider the perfectly competitive market for dress shirts. The following graph shows the marginal…

A: Shutdown Price: In perfect competition, the shutdown price is that point where the firms denied to…

Q: Suppose that under the Plan of Repayment one should pay off the debt in a number of equal…

A: Equated Monthly Installments are regular payments made by the borrower to the lender that include…

Q: 243 33 BHO 121 M 15 1056 T 83 Determine the price for L, M and T

A: In economics, an input-output model is a numerical accounting system that shows how numerous sectors…

Q: It is appropriate for a country to impose trade restrictions on exports that might endanger its…

A: Trade restrictions refer to government policies that limit or regulate the flow of goods and…

Q: Suppose that the market for blenders is a perfectly competitive market. The following graph shows…

A: In perfect competition, There exists a large no. of sellers and buyers The firm produces where the…

Q: 3 For products A and B, the joint-cost function for a manufacturer is c=; 92 +692 and the demand…

A: Production and consumption are both significant economic activities. As is well known, one of the…

Q: 6. The production function at Weedy's Grainery is Q = L¹4K¹/². If Weedy increases the scale of his…

A: A production function in economics is a mathematical equation that represents the relationship…

Q: Just north of the town of Muskrat, Ontario, is the town of Brass Monkey, population 6900. Brass…

A: Pareto optimality (also implies as Pareto efficiency) is a standard often utilized in economics. It…

Q: The following diagram shows the market demand for copper. Use the orange points (square symbol) to…

A: In a perfectly competitive market, supply curve is the same as the marginal cost curve of the firm…

Q: An automotive manufacturer uses 200,000 radial tires per year for its new car series. The company…

A: Production cost in economics refers to the expenses incurred by a firm in the process of producing…

Q: QUESTION 12 A rotational molding operation has fixed costs of $6,000 per year and variable costs of…

A: Total cost is the sum of fixed cost and variable cost. Fixed cost is the cost that remains same at…

Q: es If the proportion of the total disposable income spent on consumer goods and services is 93.0…

A: MPC is the marginal propensity to consume. It is calculated as the change in consumption divided by…

Concept explainers

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Money supply

VIEW

Step 2: Fed's tools to decrease the money supply

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

In what ways can the Fed be subject to external pressure (Select all the apply from the options below) 1. The president can exercise control over the memebership of the Board of Governors and appoint a new chariman every four years 2. The Congress scrutinizes Fed's budgertary requests and can reduce the amounts requested if the Fed has fallen out of favour 3. The Congress can try to put pressure on the Fed and amend the Fed's charter 4. The Fed is subject to influence from different investors groups because it has to rely on external sources of funding
2. Create the T-entry for the Fed that goes together with the choice in the question above
ASAP When the economy is in recession and the Fed wants to do expansionary policy, explain what all 4 types of policies they could undertake.
The economy's unemployment rate is 2% and the inflation rate is 18%. The most appropriate policy for the Governor of the New York Fed to pursue would be: a. do nothing because the unemployment rate is too low.b. increase the money supply to try to reduce the unemployment rate. c. increase the money supply to try and increase the unemployment rate. d. none of the other responses are correct. e. reduce the money supply to try to reduce the inflation rate.
The federal funds rate is the interest rate that the Fed charges banks for its loans to them Group of answer choices True False. Type out the correct answer ASAP with proper explanation of it.
An economy begins in long-run equilibrium. a. Consider the formulation of an oil cartel. Illustrate and explain how this affects prices and output over time. b. If the goal of the Fed is to stabilize the output, what should the Fed do with the money supply in response to this change? Illustrate and explain.
In what ways can the Fed be subject to external pressure? (Select all that apply) 1. The president can exercise control over the membership of the Board of Governors and appoint a new chairman every 4 years 2. The congress scrutinizes Fed's budgetary requests and can reduce the amount requested if the Fed has fallen out of favour 3. The congress can try put pressure on the Fed and amend the Fed's charter 4. The Fed is subject to influence from different investor groups because it has to rely on external source of funding
Critics of federal banking policy argue that deposit insurance is a key reason for banking failures. The banks enjoy a "heads I win, tails the government loses" proposition. Several possible reforms of deposit insurance have been suggested. For example, the limit on insured deposits can be raised, reduced, or eliminated. Do you think a change in deposit insurance would prevent bank failures?
According to Monetarists, what should the government do if unemployment is 4% and inflation is 12%? Select one: a. Decrease the supply of money b. Decrease government spending c. Raise taxes d. Do nothing e. Lower interest rates
What are some other sepcific times the FED has used this monetary policy on the economy?
If the Fed opts to employ open market operations to increase the money supply, then a.The Fed will have to compensate for this change by increasing the discount rate b.Bond rates will increase because the Fed must buy Treasury bonds from individuals in the market, and this will cause the demand for these bonds to increase c.Banks will petition the Fed to increase the federal funds rate to recoup their losses d.Government budget surpluses will be more likely to achieve e.Bank reserves will decrease as consumers withdraw funds to purchase more Treasury Bonds and this will have an effect on the money supply via the money multiplier
Read the event The Federal Reserve raises reserve requirements. What would likely result from this event? A. An economy would see a slight decrease in aggregate demand. B. Interest rates on loans decline. C. Consumer demand would increase thus increasing prices. D. Inflation would reach levels that are acceptable for full employment.