QUESTION 16 2 policies are applied. The overall outcome is a lower interest rate and no change in output. Which 2 policies are applied? (select two answers) Monetary expansion O Monetary Contraction O Fiscal Expansion Fiscal Contraction 00O0
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- tion 9 Unsaved The Federal Reserve expands the money supply by 5%. In the long run in this scenario, is money neutral? Money is always neutral in the long run. Money is never neutral in the long run. While there might be scenarios in which money is not neutral in the long run, this scenario is one in which money is neutral. Money is neutral in the long run in this scenario if lower interest rates lead to investment but that investment does not successfully create capital. If the investment is successful, money is not neutral in this scenario.Q-3. (B). Evaluate the policy options open to a government when the Government wants to close a deflationary gap (negative output gap) and reduce unemployment Q-3. (A). I deposited Rs. 3 million of my money in a Habib Bank Limited, State Bank of Pakistan: Required rate of reserve ratio (RRR): Weekly Average Demand Liability was set as 10.0 % in June 2020. You are required to calculate the change in the money supply in the economy. If RRR decreased to 5% in August 2020, what will happen with the same deposit of Rs. 3 million. You are also required to compare and discuss it in few lines. Q-2. (B). The labor force in Pakistan is 15,000,000 and the number of employed is 12,000,000. Calculate the number of unemployed and the unemployment rate. Also discuss it in few lines by comparing it with NRU (natural rate of unemployment 5%).Diop, Mame esign Layout References Mailings Review View Help 14.) 2020 was year the COVID-19 global pandemic. Specifically explain how both monetary and fiscal policy have been used in the United States as a reaction to date.
- Assume money supply increases at rate z. Explain what seigniorage is. Use formulas. What are the factors that can increase the seigniorage?You have been hired as a Marco Economist by the President of the United States to help evaluate the recentannouncement by Federal Reserve chairman Ben Bernanke that the FED will be increasing interest rates again.Ben Bernanke has justified the move on the grounds that the economy continues to be strong. Answer thefollowing questions. Provide a graphical explanation for your answers whenever possible. 1. What is the fed trying to do?A. slow down the economyB. stimulate the economyC. remains unchanged 2. How is the fed doing it?A. buying bondsB. selling bondsC. remains unchanged 3. What happens to bond prices?A. increaseB. decreaseC. remains unchanged 4. What happens to the interest rate?A. increaseB. decreaseC. remains unchangedA rising price level eliminates an excess supply of money.a. Trueb. FalseSelect one:TrueFalse Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Consider the simple quantity theory of money. Which variables are exogenous?(Choose one or more.)A The stock of money.B The demand to hold money.C The (exchange) value of money.D The purchasing power of money.E The average level of prices.面 6Edit & eate answer both please Barter exchange is typically driven out by a money exchange system because money exchange allows more specialization. money exchange increases the amount of goods and services available in the cconomy. money exchange requires a double coincidence of wants. all of the above. only a and b above. When taxes decrease, disposable income increases, so consumption and aggregate demand increase increases, so consumption and aggregate demand decrease. decreases, so consumption and aggregate demand decrease. decreases, so consumption and aggregate demand increase. re to search 20°CDiscuss "Money is not real. It is a conscious agreement on measuring value." -- John Ralston Saul Do you agree or disagree with the statement by JR Saul? Post your thoughts. 2. an Internet search of the famous words "irrational exuberance" and read a few articles. Post links to the articles and provide additional input. Here are a couple of questions to guide the discussion: What do you think Greenspan meant by the term "irrational exuberance"? Are/were the markets irrational? 3. Monetary Policy In the mid-1970s and early 1980s, why was the bank not able to meet its target inflation rate of 2%? What is the "too big to fail" issue? Why do you think Canada has been able to weather the economic storms better than the United States? Why was the Financial Stability Board established? Was it really necessary? Does Mark Carney address those arguments that would refute the use of interest rate targeting as an effective monetary policy? thanks
- When the money market is drawn with the value of money on the vertical axis, in which situation does the price level increase? a.if either money demand or money supply shifts right b.if money demand shifts left or money supply shifts right c.if money demand shifts right or money supply shifts left d.if either money demand or money supply shifts left correct and incorrect answer explanation Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote. Take care of plagiarism. Answer completely. You will get up vote for sure.Scenario FROQ In 2019 the federal government decreased interest rates for banks three times. Shortly after, POTUS tweeted the following Would be so00 great if the FED would further lower interest rates and quantitative ease. The Dollar is very strong against other currencies and there is almost no inflation. This is the time to do it. Exports would zoom! December 17, 2019 A. Define the type of economic policy inferred by scenario and describe how it impacts the economy. B. Describe why POTUS has no power to control the implied power inferred to by the scenario above. C. Describe how a change in political party leadership could effect the outlined scenario above.1.Monetary equilibrium occurs when theQuestion options: A) supply and demand for all goods in the economy are equal at the current rate of interest. B) existing supply of money is willingly held by households and firms in the economy at the current rate of interest. C) growth in the money supply is zero. D) the money supply is growing at a constant rate. E) nominal rate of interest equals the real rate of interest. 2.The economy starts in long-run equilibrium. After an initial shock, and the subsequent adjustment process, the economy ends up at a point with a higher price level and the initial level of real GDP. Which of the following initial shocks would explain this?Question options: a) An increase in desired savings. b) An increase in government transfer payments. c) An appreciation of the Canadian dollar. d) An improvement in production technology. e) An increase in the cost of factor inputs. 3.The economy starts in long-run equilibrium. After an initial shock, and the subsequent…