Expansionary Monetary Policy and Fixed ER with perfect capital mobility in short run and long run. Explain.

Some economists think that central banks should try toprick bubbles in the stock market before they get outof hand and cause later damage when they burst. Howcan monetary policy be used to prick a market bubble?Explain using the Gordon growth model.

Which of the following would be an example of expansionary monetary policy a. Purchase back a government bond b. Decrease in the reserved requirements c. Sell government bond d. A and B 

QUESTION 9 The goal of monetary policy is to O A. Set currency exchange rates O B. Set money supply C. Reduce the unemployment rate O D. Stimulate economic growth

According to the _______________, the holdings of a country' treasure primarily in the form of gold constituted its wealth.  a. Gold Theory b. Ricardo Theory c. Merchantilism Theory d. Heckscher-Ohlin Theory

The U.S. monetary policy is conducted to achieve two goals of price stability and fullemployment output. In the short run, monetary policy can influence economic activity through the monetary transmission mechanism. Which of the following is false?a. Monetary expansion tends to encourage consumption by lowering the interest  rate. b. Monetary expansion tends to encourage investment by lowering the interest  rate. c. Monetary expansion tends to lead to appreciation of the domestic currency,  which encourages the foreign imports.d. Monetary contraction leads to lower asset prices, which tends to discourage  investment.e. All of the above are correct

Explain how the contractionary monetary policy in the U.S. adds to the global recession.

In the short run, if the central bank decreases the money supply, the currency will and output will O appreciate; rise O appreciate; fall O depreciate; rise O depreciate; fall

Evaluate how a banker’s acceptance may benefit the following:a. Exporterb. Importer, andc. Issuing bank

Why do politicians want to control economic policy? What are the things that make it difficult, if not outright unwise, for the government to exercise political control over monetary policy?   Only typing answer Please explain step by step