68)The Fed could end up being the proverbial “fool in the shower” according to monetarists because: Select one: a. The recognition lag of monetary policy is long and variable b. The decision lag of monetary policy is long and variable c. The impact lag of monetary policy is long and variable d. The recognition lag of monetary policy is long and variable

Keynesian economists believe that __________________.Group of answer choices A. the velocity of money is stable B. changes in the money supply do not affect output C. the velocity of money is affected by changes in expectations

One of the advantages monetary policy in relation to fiscal policy is that:   a. It is easier to control b. It reduces the role of the state in the economy C. It can be adjusted faster if necessary d. It makes it more difficult to engage in speculation

QUESTION 1 The major difference between the Keynesian approach and the monetarist approach is that   a. there are no differences.   b. Keynesian analysis explains an equilibrium condition and monetarism does not.   c. monetarism explains an equilibrium condition and Keynesian analysis does not.   d. in Keynesian analysis, money affects the economy by first affecting interest rates; monetarist analysis is not limited to working through interest rates.   QUESTION 2 When comparing the Keynesian and monetarist approaches, the only substantive difference is that   a. Keynesians approach aggregate demand by multiplying the money supply by velocity, while monetarists use the equilibrium conditions of the expenditure schedule.   b. Keynesian analysis suggests that money affects consumption first while monetarist analysis suggests that money affects investment spending first.   c. the Keynesian equation leads to a prediction of real GDP; the monetarist equation…

MULTIPLE CHOICE! ONLY answer! NO explanation! 1. If the inflation rate tends to go up, then which of the following is the appropriate monetary policy that the Fed should conduct?Open market sale which will increase interest rates and decrease money supplyOpen market purchase which will increase interest rates and decrease money supplyOpen market purchase which will decrease interest rates and increase money supplyOpen market sale which sale which will decrease interest rates and increase money supply 2. If the Fed conducts Open Market Purchase, then:price of bonds increase, interest rates decrease and money supply decreases.price of bonds decrease, interest rates increase and money supply decreases.price of bonds increase, interest rates decrease and money supply increases.price of bonds decrease, interest rates decrease and money supply increases. 3. Which of the following is called the Federal Funds rate?The interest rate at which banks borrow money from the Fed.the interest rate at…

4.This is a two-part assignment using the links below plus additional resources. Using the below links interpret the monetary and fiscal policies as either expansionary or contractionary. Define which school of thought supports each of the polices. Make sure to cite at least three sources either in MLA or APA style and have a minimum of 250 words. Here are some sources to get started https://www.whitehouse.gov/issues/budget-spending/ (Links to an external site.) https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm

Economics If the Fed wants to move from a point on the​ short-run Phillips curve representing high unemployment and low inflation to a point representing lower unemployment and higher​ inflation, then it should A.use contractionary monetary policy. B.use expansionary fiscal policy. C.use expansionary monetary policy. D.use a combination of expansionary monetary and fiscal policies.

b) discuss how monetarists and keynesians view the role of government in relation to market intervention.

The central bank of a country facing economic and financial market difficulties asks for your advice. The bank cut its policy interest rate to the effective lower bound, but it wasn't enough to stabilize the economy. Drawing on the actions taken by the Federal Reserve during the financial crisis of 2007-2009, what might you advise this central bank to do? Multiple Choice O You should advise the central bank to use unconventional monetary policy tools such as quantitative easing, a policy in which the central bank alters the composition of its balance sheet, or credit easing, where aggregate reserves are provided beyond the level needed to lower the policy rate to zero. The central bank could also inform markets of its commitment to keep Interest rates low (forward guidance). Because the central bank has hit the zero bound with its policy Interest rate, there is nothing further it can do to Influence economic and financial market conditions. In the face of severe economic weakness, you…

1. Monetary policy and the Phillips curve The following graph shows the current short-run Phillips curve for a hypothetical economy; the point on the graph shows the initial unemployment rate and inflation rate. Assume that the economy is currently in long-run equilibrium. Suppose the central bank of the hypothetical economy decides to decrease the money supply.