What is the relationship between the monetary base and the Fed's balance sheet?   The monetary base is _______.     A. equal to the U.S. government securities held by the Fed, which are Fed assets   B. the Fed's total liabilities   C. equal to currency, which is a liability of the Fed   D. the Fed's total assets

Question 24 Which answer choice represents a fiscal policy rather than a monetary policy? A lowering the money supply. the setting of interest rates an increase in government spending O D the establishment of reserve requirements ©2021 Illuminate Education TM Inc B. O000

11. Inflation and unemployment Suppose that the government believes the economy is producing goods and services beyond its optimal level. The government therefore decides to decrease the quantity of money in the economy. This monetary policy_______ the economy's demand for goods and services, leading to________  product prices. In the short run, the change in prices induces firms to produce______    goods and services. This, in turn, leads to a_______   level of unemployment.   In other words, the economy faces a trade-off between inflation and unemployment: Lower inflation leads to________  unemployment.

2. The Federal Reserve's Board of Governors consists of _____ members who are appointed by the _____ and confirmed by the _____.   a. seven; Senate; president   b. five; president; Senate   c. seven; president; Senate   d. twelve; Congress; president

Suppose the Fed sells $300 billion in government securities and the reserve ratio is 0.2 Calculate the resulting change in the money supply. Be certain to include a negative sign. change in the money supply: !$ billion Next, show the impact this open market operation will have on the graph in the short run. 10 Solow growth curve Short-run aggregate supply 8 7 50 3 2 Aggregate demand 0 0 8 9 10 Real GDP growth rate (%) Which statement describes the impact on inflation and real GDP the Fed's policy has in the short run? Inflation decreases and real GDP increases. Inflation decreases and real GDP decreases.

The interest rate commonly used by banks to borrow from each other outside the US, which is also used for revolving loans inside the US, is the O REPO O IEURO O LOREN O LIBOR

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

9. Read the headline below: CONTINUED RISE IN UNEMPLOYMENT RATE LEADS FEDERAL RESERVE TO INCREASE MONEY SUPPLY Which of these best explains the reason for the Federal Reserve's action? A. to encourage consumers to stop spending money they do not have B. to make it easier for businesses to borrow money for expansion C. to give businesses incentives to decrease their production of goods GO D. to provide more funds for the government-run entitlement programs

Question 1 (a) The rates of growth of money supply is 10%, of velocity of money circulation 1%, of real GDP 3%, what is the inflation rate? (b) The nominal interest rate is 7%, the inflation rate is 5%, what is the real interest rate?