which of the following are true statements about another growth model - the Quantitative Theory of Credit? [Multiple select] Credit creation drives nominal GDP growth and asset price inflation. Banks are only financial intermediaries between borrowers and lenders. Empirically, in the 20th century, the velocity of money is usually constant over time when money is defined as M0, M1. . .M5.

Critically review the policy response of central banks to the Global Financial Crisis. What explanations have Post-Keynesians’ forwarded for the comparative failure of this contemporary policy response?

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.

Robust economy growth ships the transactions demand for money. Consequently, growth will tend to either raise our interest rate or decrease those rates. Please see which direction the rates move, and explain why

Interest rate Central bankers in Widgetsa have decided that inflation is too high and contractionary monetary policy is needed. First, position LRAS where it would be if contractionary policy is needed. Then, show the short-run results of this policy action by shifting the appropriate curves on the graphs. Quantity of loanable funds Demand LRAS Supply Price level Select all of the actions that are contractionary policy choices the central bankers could use. increase taxes sell bonds to banks decrease government spending raise the interest rate for last-resort loans decrease reserve requirements Real GDP AD SRAS

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.

help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

Long Question 2 of 2: given by - Consider the short run model of Chapter 13. The IS curve is Ỹ, = ā – b(R, –7) (7) where Y, is the short run output, R, is the real interest rate, ř is the long-run interest rate (or the marginal product of capital). The term ā is the aggregate demand parameter. Also, b captures how responsive investment is to changes in the real interest rate. Moreover, the Phillips curve is given by The = Tt-1 + vY; + ō (8) The term v captures changes in inflation as a response to changes in the current economic conditions, and ō captures shocks in the supply side of the economy. The monetary authority in this economy wishes to keep inflation at a certain "target" level ī. Whenever there is discrepancy between current inflation and target inflation, the central bank responds by changing the interest rate according to the rule Rt -ř = m(T; – ñī) (9) where m is a positive parameter (i.e., ñ > 0) that captures how aggressive the monetary policy is. 1 1 of 5) Derive the…

During an economic downturn, a nation's central bank decides to implement quantitative easing by purchasing large amounts of government securities to increase the money supply and encourage lending and investment. This policy action is intended to:A) Tighten the money supplyB) Increase interest ratesC) Stimulate economic growthD) Reduce public spending Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.

Preface: The commercial banking sector through its role of granting and creating credit in the money creation process has a large influence on the overall macroeconomy. Specifically, their directing of credit has a large impact on what type of transactions happen in the economy. The majority of loans that banks grant go towards existing assets--mainly real estate. This means that the majority of banks' credit creation goes towards unproductive transactions or transactions which don't increase GDP (The purchase and sale of existing real estate assets does not add to GDP). Write at least two paragraphs answering the following questions: 1. Given that the majority of created credit goes towards existing assets, what affect do you feel this has on asset price inflation? 2. Why do you think that banks grant the majority of their loans to finance the purchase of existing assets or unproductive transactions? (Remember banks are profit maximizing firms)