Which of one of all these actions stated below would the Federal Reserve most likely take to end a recession? A. Print more money/currency B. Reduce the interest rate C. Sell government securities D. Increase the reserve requirements

Which of the following statements about money that is​ correct?   A. Inflation brings a rising value of money.   B. A work of art is an example of money because it can act as a store of value.   C. Money is a completely stable store of value.   D. Without a medium of exchange, goods and services must be exchanged directly for other goods and services.

1. Which do you think would be more harmful to the economy—an inflation rate that averages 5 percent a year that has a high standard deviation or an inflation rate of 7 percent that has a standard deviation close to zero?  2.  Suppose a major bank needs to borrow $20 billion overnight that it cannot obtain from private creditors. The Fed is willing to make a discount loan of $20 billion provided that it will not alter the aggregate supply of reserves to the banking system. How can it do so?

Analyse the impact of these events on the price level and total output of an economy in the short term. If policymakers were to use monetary policy to actively stabilize the economy, in which direction should they move the money supply and interest rate and show the effects of these policies? Please discuss your answers with appropriate graphs. - (a) The government raises taxes and reduces expenditures to balance its budget. (b) Enterprises in the economy are pessimistic about the economy in the future. - (c) Foreigners increase their taste for domestically produced beef. (d) The money wage rate rises.

The pandemic caused the economy to slow down. Which one of the following is correct to speed up recovery. a. Tax cuts, increase money supply, raise the interest rates. b. Tax cuts, increase money supply, increase government spending. c. Tax cuts, decrease money supply, raise the interest rates. d. Tax cuts, decrease money supply, increase government spending.

1. Name & explain the three advantages of a monetary economy.

16. Which of the following is true? a. The Great Depression was caused in part by “the liquidity trap.” b. The Great Depression illustrated why the “Paradox of Thrift” is important for understanding the macroeconomy. c. The Great Depression proved that savings do not equal investment because of pessimistic animal spirits. d. The price system in the capital market (the real interest rate) was sabotaged by a structurally unsound central banking system. e. The Great Depression was caused in part by runaway greed among the business owners of the time.

1.   Fitch Ratings Inc. downgrades banks credit ratings. A.  How does this affect borrowers, lenders, and financial institutions? B.  What are the implications of this downgrade to the health of the financial system?

1. What are the main reasons that the U.S. inflation surged last year? 2. What is the monetary policy the Fed (central bank of the U.S.) uses to control inflation? 3. How did the monetary policy cause the bankruptcy of Silicon Valley Bank?

Question Now we introduce banks that will act as liquidity providers in the economy. Suppose that banks are able to issue private IOU's, such that individuals deposit goods with the bank and the bank can promise a return on the deposit. We start by assuming that there is no reserve requirement or lending by the Central Bank. (a) Suppose a young individual wants to use one consumption good to acquire money. What return does the bank need to promise the individual to have them deposit the good with the bank instead? (b) Suppose that when the individual deposits a good with the bank, the bank uses this good to create capital. Further, suppose that when the bank offers a return on deposits that is equal to the real rate of return on money then the individual will choose to deposit with the bank instead of acquiring money. A young individual in period t deposits one good with the bank when young. Suppose no young individuals in period t+1 make deposits. How does the bank pay the young…