For many years after the Great Depression, economists believed a central bank policy of increasing bank reserves in response to a recession would be Select one: A largely ineffective. OB. useless unless it was accompanied by declining prices. C. the opposite of what the circumstances required. OD useless unless it also raised interest rates.
Q: Which of the following is not an example of a quantitative variable? The weight of a box of cereal…
A: Quantitative variables are those that can be measured numerically and are often associated with a…
Q: The Concept of Elasticity Explain the general concept of elasticity and how it can be applied to…
A: Elasticity is a responsiveness in demands with change in different variables (like price, Income…
Q: Consider a world composed of two countries, Home (H) and Foreign (F). Individuals living in each…
A: Given Total labor endowment at home LH=10 and total labor endowment at foreign LF=10 Amount of…
Q: There are two firms in the blastopheme industry. The demand curve for blastophemes is given by…
A: Monopolist: A monopolist is a single seller in the market and hence he faces the downward sloping…
Q: Wealth taxes are controversial. What is your opinion on wealth taxes? Why?+ Please be specific
A: Wealth taxes are taxes on the total value of an individual's assets, which include cash, real…
Q: examples of non-excludable goods and non-rivalrous consumption
A: Public goods are the example of non excludable and non rivalrous in nature
Q: Assets Liabilities Reserves £500 Deposits £2,200 Loans £2,000 Capital £300 £2,500 £2,500 19. Refer…
A: Reserves are 500. Loans are 2000. The total asset is 2500. ----------------------------------------
Q: 2. What is the relationship between the total cost curve, and the average cost per unit? Explain…
A: The graphical depiction of the relationship between the cost of production and the quantity of…
Q: Which of the following statements is incorrect? a. Inflation is the percentage change in the…
A: Following topics are related to consumer price index and inflation. Consumer price index is the…
Q: QUESTION 45 Which one of the following would cause an appreciation of the exchange rate (in each…
A: The exchange rate refers to the rate at which the currency of one country can be exchanged with…
Q: Return to the BEA Tables for US International Trade in Goods and Services. Scroll down to "U.S.…
A: Value of exports refers to the aggregate value of all the goods and services within a financial…
Q: Effect of fiscal and monetary policy on interest rate in zimbabwe
A: Central banks capitalize on interest rates as an essential vehicle for influencing the economy.…
Q: 2. Explaining short-run economic fluctuations A majority of economists believe that in the long run,…
A: AD is the total amount spent on all the goods and services in the economy and AS refers to the total…
Q: You are an Economics consultant at Economics 4U, a small consulting firm that helps its clients to…
A: Elasticity is a concept that can help businesses forecast demand and supply levels and make product…
Q: Sandy Cove is the only beach resort on a small island and the only beach activity it offers is jet…
A: In a monopoly market structure, There exists a single seller. The monopolist maximize its profit…
Q: Briefly explain the role played by banks between savers and borrowers and how the economy benefits…
A: Banks are financial institutions that accept deposits from savers and lend out funds to borrowers.…
Q: For the following table, assume a MARR of 9% per year and a useful life for each alternative of six…
A: The incremental rate of return is used to find the most preferred alternative when two or more than…
Q: How is unemployment defined? a) The number of people in the labour force who are actively seeking…
A: Labour force consists of workers are either employed and unemployed. People in the labor force are…
Q: A production possibilities curve is bowed out, indicating increasing opportunity cost because of
A: Meaning of Production Possibility Frontier: The term production possibility frontier refers to the…
Q: You are working trying to estimate the proper price to charge a market for the firm that sells beer…
A: Price elasticity is a measure of the responsiveness of the quantity demanded of a good or service to…
Q: (2,0) (4,2) (3,5) P1 (4,1) Pa % D Using backwards induction on the game tree above, what payoffs…
A: The above game is a sequential game in which player 1 plays first and player 2 plays after player 1.…
Q: The marginal propensity to consume (MPC) for this economy is , and the spending multiplier for this…
A: The spending multiplier estimates the rate at which total spending will change in answer to an…
Q: Detail the working of the ' new consensus ' 3- equation model.
A: The "new consensus" 3-equation model refers to a system created by economists to model the…
Q: The following data are for the economy of Moksha. C = 30 + 0.6Y G = 150 I = 60 XN = 50 −…
A: C=30 + 0.6Y ---------> Consumption function G=150 -------------> Government expenditure I=60…
Q: The table below presents the tax revenue and spending for the government over five years. Government…
A: Budget surplus occurs when estimated government revenue exceeds the government expenditure. Budget…
Q: QUESTION 29 The type of unemployment that fluctuates with the 'ups and downs' of the economy is…
A: Unemployment refers to the number of population that is unable to get work inspite of their…
Q: 1. Assume that data in the accompanying table give an indifference curve for Amrey. Graph this…
A: An indifference curve is a graph that represents various combinations of two goods that give a…
Q: Total population Working age population Discouraged workers. Full-time employed Part-time employed…
A: The unemployment rate will be computed with the formula: Number of unemployed people / Total number…
Q: With the aid of the graph explain how an increase in informative advertising increase the profit of…
A: A style of advertising known as informative advertising gives prospective clients pertinent and…
Q: Effect of fiscal and monetary policy in zimbabwe
A: Fiscal policy: It refers to a policy in which government use tools such as collecting tax, spending…
Q: How do you forecast Amazon’s future income statement utilizing forecasted growth rates
A: A forecast is a prediction based on previous data and patterns. Businesses analyse vast volumes of…
Q: What is being described here? "The excess of utility from the consumption of one more unit of a…
A: The satisfaction or usefulness that an individual derives from consuming or using that good is…
Q: How does rule based monetary policy help to overcome the time inconsistency problem? What is one…
A: Rule-based monetary strategy alludes to an arrangement wherein the central bank focuses on a…
Q: 6. Changes in taxes The following graph plots an aggregate demand curve. Using the graph, shift the…
A: Absolute income hypothesis: This was proposed by Keynes which explains that how much a household…
Q: QUESTION 10 If the multiplier is 5 what would be the change in consumption if income rises by 50? O…
A: MPC is the marginal propensity to consume. Multiplier is calculated by the following formula :-…
Q: reen and Gold Industries sells 3 products. The sales are expected to increase every year as shown…
A: (FV) is the value of an asset or cash on a given specified date in the future, based on its PV and…
Q: QUESTION 8 Which of these is positively related to the size of the multiplier? O a. The marginal…
A: In economics, the multiplier effect is the rise or fall in the outcome which results due to the…
Q: Effect of fiscal and monetary policy on standard of living in Zimbabwe
A: Fiscal and monetary policies can have a significant impact on the standard of living in Zimbabwe.…
Q: Please no written by hand Lyft's Business Strategy Proposal What is Lyft's most important…
A: Lyft's most important important strategic issue" refers to the primary challenge or problem that…
Q: How do you think changes for our economy will be impacted by an increase in the money supply?
A: Increase in money supply is known as Expansionary monetary policy. In this policy, central bank of a…
Q: 6. The following list gives the balance of payments account? information: Increase in…
A: The nation's balance of payments consist of the current and capital accounts. The current account…
Q: during economic downturns (recessions) The poverty rate tends to and _______ during economic upturns…
A: The poverty line is the minimum income level required to fulfill their basic needs. Poverty rate It…
Q: 1. Why does the United States enforce the legal limit on how much money the federal government can…
A: The federal government is the public government of a country, explicitly on account of the United…
Q: Amy makes and sells a device and is the only retailer in town. However, she faces considerable…
A: In perfect competition, There exists a large number of buyers and sellers. The firm maximizes it's…
Q: What is meant by the term "commodity money"? a) A type of certificate of deposit that can be used to…
A: Money is anything that is accepted as a medium of exchange to buy goods and services, and have store…
Q: The meaning of constant returns to scale is that as all inputs are increased: a. Average total cost…
A: The production function shows the relationship between the inputs used and output produced. The…
Q: Suppose that daily demand for breakfast sandwiches at a local store is given by the following: Qd =…
A: Price elasticity of demand is an estimation of the adjustment of consumption of a product…
Q: The following graph shows a hypothetical economy in long-run equilibrium at an expected price level…
A: A stock market is a market place where stocks of companies are traded, including securities listed…
Q: what are the benefits and costs of policy intervention?
A: Policy interventions can have both benefits and costs, which depend on various factors such as the…
Q: Effect of fiscal and monetary policy on exchange rate in Zimbabwe
A: The value of one currency stated in terms of another currency is referred to as the exchange rate.…
economi
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- In an economy where the central bank implements negative interest rates as a monetary policy tool, what is the most likely short-term impact on consumer savings behavior and bank profitability? A. An increase in consumer savings as people seek to safeguard their money and a rise in bank profitability due to increased lending. B. A decrease in consumer savings as the incentive to save diminishes and a decrease in bank profitability due to lower interest margins. C. No significant change in consumer savings behavior but an improvement in bank profitability due to lower borrowing costs. D. A shift in consumer investment towards riskier assets and challenges in bank profitability due to compressed interest margins. Please don't use chatgpt it is giving wrong answer and please provide valuable answeridentify the expansionary monetary policy implemented y the central bank. and explain On Tuesday, the Central Bank, also in response to the covid19 precautions, lowered the repo rate to 3.5 percent and lowered the reserve requirement to 14 percent, in order to lower lending rates and increase liquidity in the financial system.Explain in detail the process of Monetary Policy transmission of a decrease in the cashinterest rate. Use relevant graphs to describe how a Central Bank’s action on the interest cashrate ripple through the economy and lead to the target policy goal. (Three connected diagramsshould be used: (1) money supply and demand (2) investment demand schedule (3) AS/ADdiagram. Interest rates is the variable that connects the first and second diagram).
- If the central bank purchases securities worth $ 500 million from banks, it will result in an increase by the same amount of reserves, but monetary base O True FalseSuppose you have the following monetary asset information:Cash in circulation: $300bDemand deposits: $400bTraveler’s checks: $50bSaving accounts: $2000bMoney Market Mutual Funds: $1000bShort term time deposits: $500ba. Calculate M1 and M2.b. Recall that the quantity theory of money states that MV = PT. If the velocity ofmoney is presumed fairly constant, how is it helpful to measure the money supply(whether M1 and M2) for purposes of predicting inflation?What are five essential characteristics or features that a well-managed central bank should possess?After explaining each one, rate the FED on how well or how poorly it embodies each feature with a brief explanation. P.S. use my five essential characterists and rate FED by using them!!!!!!!!!!!! 1) A central bank should be goal dependent 2) A central bank should be instrument independent 3) A central bank should stress transparecy and communication 4) A central bank should have the goal of financial stability. 5) A central bank should be accounable
- “Since financial crises can impart severe damage to theeconomy, a central bank’s primary goal should be toensure stability in financial markets.” Is this statementtrue, false, or uncertain? Explain.Explain in detail the process of Monetary Policy transmission of an increase in the cash interest rate. Use relevant graphs to describe how a Central Bank action on the interest cash rate ripple through the economy and lead to the target policy goal. (Three connected diagrams should be used: (1) money supply and demand (2) investment đemand schedule (3) AS/AD diagram. Interest rates is the variable that connects the first and second diagram). NIf a Central Bank decides it needs to decrease both the aggregate demand and the money supply, then it will: O follow loose monetary policy. follow tight monetary policy. O follow expansionary monetary policy. follow quantitative easing policy. DELL hor DII F4 prt sc F10 F5 F6 F7 F8 F9 F3 #3 $4 & 3. 4 7. R Y F K M. * 00
- The best description of a how a central bank like the Federal Reserve makes monetary policy these days is: O The central bank aims to stabilize the money supply. O The central bank aims to adjust the nominal interest rate in order to hit its inflation target O The central bank aims to keep the nominal interest rate stable. The central bank aims to keep inflation as low as possible.Time left 1:1 Which of the following represents an action by the central bank designed to decrease the mone supply? Select one: a. buying government securities O b. a decrease in the required reserve ratio Oc. a increase in tax rates O d. an increase in the discount rate Next page ge en this pageRon Paul, a former member of Congress, believes that our central bank has benefited the U.S. economy. O True O False