When current output is greater than potential output, which of the given monetary policies is the Federal Reserve (the Fed) likely to enact? - decreasing reserves to increase interest rates - increasing reserves to decrease interest rates - stimulating consumer spending by manipulating tax rates - making imports more costly to increase domestic spending   Which of the given statements is the most direct result of the correct monetary policy from the first question?   - increases in sales of domestically made goods - decreases in sales of domestically made goods - decreases in investment and a slowing of output growth - increases in investment, aggregate demand, and long‑run growth

The answer choices for the blanks are Blank 1: fall, remain the same, rise Blank 2: remain the same, rise, decline Blank 3: international trade, real balance, interest-rate

Suppose that the Fed pursues an expansionary monetary policy by pushing real interest rates down, other things constant. Assume the policy is unanticipated:   a   We should expect real investment spending to rise   b   We should expect real consumption spending on durables to fall   c   We should expect stock prices to fall   d   We should expect the U.S. dollar exchange rate to appreciate

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Discuss two reasons why a central bank would wish to pursue a contractionary monetary policy

Suppose the Federal Reserve wants to fix the U.S. exchange rate with the yen at $0.008 per yen. If the equilibrium market exchange rate were significantly lower at $0.007 per yen, what would the Fed need to do to maintain the fixed rate of $0.008 per yen? What would be the effect of these actions on the money supply in the U.S.? Explain.

Consider Snackistan, a hypothetical country that produces only burritos. In 2017, a burrito is priced at $4.00.   NOTE:    the options for the drop down question is this: The impact of the government's decision to raise revenue by printing money is known as the (fisher effect OR velocity of money OR classical dichotomy OR inflation tax)

Hello please help. I know for sure that answer " more; left" is wrong

Please discuss the impact of monetary policy tightening with regards to both unemployment and inflation with respect to both the short run and long run?

We make use of the general monetary model here, where L is no longer assumed constant, and money demand is inversely related to the nominal interest rate. Recall from that earlier question inflation rate in Korea is = 10% and inflation rate in Japan is = 0%. In addition, assume that the bank deposits in Japan pay 2% interest rate (i¥ = 2%).   a. Compute the interest rate paid on South Korean won deposits (iwon).           b. Using the definition of the real interest rate, show that the real interest rate in South Korea (rwon) is equal to the real interest rate in Japan (r¥)           c. Suppose the Bank of Korea decreases the money growth rate from 15% to 10% and the inflation rate falls proportionately (one for one) with this decrease. If the nominal interest rate in Japan remains unchanged, what happens to the interest rate paid on Korean won deposits?               d. Using time series diagrams (impulse graphs), illustrate how this decrease in the money growth rate affects South…