ow did the Fed's monetary policy change during the Great Recession?   During the Great Recession, the Fed _______.     A. conducted daily open market operations to hit the federal funds rate target   B. engaged in quantitative tightening   C. conducted monetary policy with limited reserves   D. conducted monetary policy with ample reserves

1. Explain how to the Central Bank can reduce the money supply with open market operations. Show the impact of this contractionary monetary policy on the interest rate and discuss the implications to the economy. 2. Suppose the economy is in a recession with high unemployment. a. Identify a monetary policy that would restore the economy to its natural rate of employment and steady-state equilibrium output levels. Draw a graph of the money market to illustrate the effect of this monetary policy. Show the resulting change in the interest rate and discuss the implications. b. Identify a fiscal policy that would restore the economy to its natural rate of employment. Discuss the drawbacks and the benefits of this policy.

31)  Conditions that likely contributed to a credit crunch in 2008 include ________. A) capital shortfalls caused in part by falling real estate prices B) regulated hikes in bank capital requirements C) falling interest rates that raised interest rate risk, causing banks to choose to hold more capital D) increases in reserve requirements 32) Which of the following would not be a way to increase the return on equity? A) Buy back bank stock B) Pay higher dividends C) Acquire new funds by selling negotiable CDs and increase assets with them D) Sell more bank stock 33) If a bank needs to raise the amount of capital relative to assets, a bank manager might choose to ________. A) buy back bank stock B) pay higher dividends C) sell bank stock D) sell securities the bank owns and put the funds into the reserve account 34) Your bank has the following balance sheet:…

Typed plz  My feedback depends on  how good  quality  solution will I get

The Fed's mandated goals are "maximum employment, stable prices, and moderate long-term interest rates."   Explain the harmony among these goals in the long run. In the long run, ________.     A. increases in monetary aggregates create a positive output gap and price stability, maximum employment, and close-to-zero nominal interest rates   B. low nominal interest rates bring maximum employment, stable prices, and eliminate structural unemployment   C. price stability brings maximum sustainable potential GDP growth, maximum employment, and a nominal interest rate close to the real interest rate   D. price stability brings maximum sustainable potential GDP growth, unemployment below the natural rate, and nominal interest rates that rise slowly

51) What is the impact on interest rates when the Federal Reserve decreases the money supply by selling bonds to the public? 52)  Use demand and supply analysis to explain why an expectation of Fed rate hikes would cause Treasury prices to fall. 5.4   Supply and Demand in the Market for Money:  The Liquidity Preference Framework 1) In Keynes's liquidity preference framework, individuals are assumed to hold their wealth intwo forms: A) real assets and financial assets. B) stocks and bonds. C) money and bonds. D) money and gold. 2) In Keynes's liquidity preference framework, A) the demand for bonds must equal the supply of money. B) the demand for money must equal the supply of bonds. C) an excess demand of bonds implies an excess demand for money. D) an excess supply of bonds implies an excess demand for money. 3) In Keynes's liquidity preference framework, if there is excess demand for money, there is…

True or False 1) Starting from equilibrium in the money market, suppose the money supply increases. Other things being equal, this will cause an excess demand for money, leading people to sell bonds.

2. Outline the three monetary policy instruments the fed can implement if its objective is to cool off an economy suffering from high inflation.

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

Can you please answer question 42, please? No explanation needed  An open-market purchase of securities by the Bank of England results in ________ in reserves and ________ in the supply of money.      A) an increase; an increase B) a decrease; an increase C) an increase; a decrease D) a decrease; a decrease