19. If the Fed reduces the money supply to reduce inflation: a) the interest rate will increase, and the price of US exports will fall and US imports will rise. b) the interest rate will increase, and the price of US exports will rise an US imports will fall. c) the interest rate will increase, and the price of both US exports and U rise. d) the interest rate will increase, and the price of both US exports and U foll

Ceteris paribus, if the Fed was targeting the quantity of money supplied and money demand increased, the Fed would likely If the Fed was instead targeting interest rates and money demand increased, the Fed would likely O increase the money supply: decrease the money supply decrease the money supply: do nothing O increase the money supply: do nothing do nothing: increase the money supply do nothing: decrease the money supply

An increase in the money supply creates A. An excess supply of money that is eliminated by rising prices B. An excess supply of money that is eliminated by falling prices C. An excess demand for money that is eliminated by rising prices D. An excess demand for money that is eliminated by falling prices

If the Fed lowers interest rates, the value of the US dollar will___ which will lead do a(n)____ in spending on US goods.  a) increase, decrease b) decrease , decrease c) decrease, increase d) increase, increase

If the Fed decided to decrease the Federal Funds Rate, (*the overnight rate that they lend to other banks) This means they are attempting to.. O Decrease the supply of money O Slow the economy because inflation is escalating O React to the trade war with China and restrict imports O Increase the supply of money

Sh 10  Economics

Explain the​ Fed's policy tools and briefly describe how each works. The Fed uses its policy tools to​ _______.     A. regulate the amount of money circulating in the United States by printing enough money each year for the purchase of consumer goods and services   B. influence the exchange rate and the​ country's trade balance by adjusting the interest rate   C. keep the government budget debt under​ $20 trillion by adjusting loans to Congress   D. influence the interest rate and regulate the amount of money circulating in the United States by adjusting the reserves of the banking system

Suppose that the money supply increases by 20 percent. If there is no inflation, what does the quantity theory of money tell us must happen to real GDP? (Assume that the velocity of money is constant.) Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a It must increase by more than 20% It must increase by less than 20% C It stays the same d. It must increase by 20%

16 A change in-----------leads to a change in-----------as well.   a) the money supply indirectly; investment b) the interest rate; government purchases c) the money supply; government purchases d) consumption expenditures; the money supply

Answer the following questions in your own words. Start a new thread while replying. 1. What are the determinants of price elasticity of demand? Explain the determinants. 2. What is the difference between inelastic demand and elastic demand? Provide an example of each from real life. 3. Refer to the graph below: Price 22 20 + 18 +- 16 + 14 B 12 10 + 4 Demand +++ 100 200 300 400 500 600 700 800 900 Buaxtity From the graph above calculate: a. Price elasticity of demand from point A to point B (use the mid-point method). Is it an elastic situation or an inelastic situation? b. Price elasticity of demand from point B to point C (use the mid-point method). Is it an elastic situation or an inelastic situation?