Suppose the Bank of Canada buys $500,000 in bonds from Bank 1, and Bank 1 and all other banks have no excess reserves prior to this purchase a. What type of policy is this? OA Contractionary fiscal policy OB Expansionary monetary policy OC Expansionary fiscal policy OD Contractionary monetary policy OE None of the above b. What assets of the Bank of Canada change and by how much? Complete the second column of the following table by in each row entering "0" if the istod item is not an asset and/or does not chan positive number representing an increase in an asset, or a negative number representing a decrease in an asset (Do not include the $ symbol in your answers) Change in Asset Cash and foreign deposits Bank notes in circulation Equity Government securities Government of Canada deposits Members of Payments Canada deposits (reserves) Advance to members of Payments Canada c. What habilities of the Bank of Canada change and by how much? Complete the second col

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

Which of these statements are true? The discount rate is normally equal to the federal funds rate. The federal funds ratre is normall higher than the discount rate. The Federal Funds rate is the rate that banks are charged when they borrow from the Fed. O The discount rate is normally higher than the federal funds rate.

In the country of Juventus, the money supply is equal to $52 (bilion), the velocity of circulation is 5, and real GDP is $100 (bilion) a. What is the price level in Juventus, and what is the valur of its nominal GDP? Round your price level to 2 decimal places Price level Nominal GDP b. If money supply increases by 20 percent, what will be the new values of the price level and nominal GDP, assuming that Vand real GDP remain constant? Round your price level to 2 decmal olaces Price levet Nominal GDP c What does this suggest about the connection between money supply atnd price level? The relationship between money supply and price level in this case is Cick to select)

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Consider the following table: Interest rate % Asset demand for Money supply $460 460 220 460 220 460 220 460 The transactions demand for money in this money market would graph as a: 2 4 6 8 Transaction demand for money 10 vertical line $220 220 horizontal line money $300 280 260 240 220 Oline sloping downward and to the right single point line sloping upward and to the right

Macmillan Learning b. A central bank reduces the rate of interest that it charges to commercial banks on loans. expansionary c. The Federal Reserve purchases bonds on the open market. O expansionary d. The Federal Reserve decreases the discount rate. expansionary O contractionary expansionary contractionary contractionary e. A central bank increases the percentage of deposits that banks are required to keep in vaults. O contractionary.

Expansionary monetary policy is when: None of the statements are correct. The president and congress agree to lower interest rates. The president orders the Federal Reserve to cut income taxes. The Federal Reserve reduces the regulations hindering our business community. The Federal Reserve increases the nation's money and credit supply and raises interest rates. Moving to the next question prevents changes to this answer. O JUL 21 tv 10 ^ O

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Suppose that commercial banks do NOT hold excess reserves. When the Federal Reserve raises the reserve requirement, the money supply will because commercial banks can make loans. O shrink; more O shrink; fewer O grow; more O grow; fewer