a. If expansionary fiscal policy is necessary, what changes should the government make to spending or taxes? Which of the statements best describes the monetary rule, as proposed by the economist Milton Friedman? Keynesian (intervene) and Classical (do nothing). does not represent a leakage from the money multiplier process? demandaggregate supply model? Which phrase best describes non-governmental international organizations? Contractionary monetary policy is when a central bank uses its monetary policy tools to fight inflation. Increasing individual tax rates through fiscal policy will most likely have which effect on the economy? The actual money multiplier is lower than the theoretical maximum because of __ in the economy. - The President signs a tax cut bill intended to encourage additional consumer spending. True or False: - An important policy tool for stabilizing fluctuations in the business cycle Explain briefly. What was Nixon's argument for not turning over the Watergate tapes? the decision to increase the budget will depend on whether members are using the indoor facility at least two times a week. Which of the following is an example of contractionary monetary policy? a. Calc. A contractionary policy is a type of monetary policy that aims to decrease the money supply, reduce spending, and lower inflation. True or False: Case of Banks Decreasing the Money They Lend a. Australia's commemorative $10 banknote is an example of ________ money. D. When the inflation rate is positive, the nominal interest rate is necessarily greater than the real interest rate. Which statement is true regarding regulations made by government agencies? Expansionary fiscal policy is the opposite of contractionary fiscal policy. As a result, expected income increases. CommBank criticised the RBA's approach, arguing that the 300 points of rate hikes . This lowers the interest rate, which 6) Suppose you are in charge of sales at Novartis (the largest pharmaceutical compa-ny) and your company sells a drug that causes bald men to grow hair. 1. Which diplomatic tool is often used to follow up on an initial agreement? Which two famous economists hypothesized that people would adapt their expectations about inflation to something consistent with their prior experience? Question 17. - The central bank uses open market operations to conduct expansionary monetary policy. In the short run, ____________ prices adjust. When a company issues stock, it is agreeing to share the company's __ and __ with the investor. Ans. Given the equation set forth by the quantity theory of money (M x V = P x Q), where M is the supply of money, V is the velocity of money, P is the price level, and Q is real output, which of the statements best defines V? 25. What needs to be true for there to be an expansionary gap? Cattle is not an effective form of money. They would decrease tax rates in order to increase disposable income, leading to more spending and, ultimately, more jobs. How does NASA's research contribute to our understanding of the earth? At =.05\alpha=.05=.05, what is your conclusion? By shifting aggregate demand, monetary policy can affect __________ and __________. b. Securities and Exchange Commission Policies help guide organizations--including governments--in achieving their goals. 5. How does a progressive tax code affect consumers? Which statement best describes contractionary monetary policy? It takes time to collect data and many economic reports are not totally current. Which of the following statements about real and nominal interest rates is correct? A monetary policy that lowers interest rates and stimulates borrowing is known as an expansionary monetary policy or loose monetary policy. Monetary policy is the domain of the U.S. Federal . Mexican pesos, Identify each factor which contributed to Swiss banks becoming the world's largest holders of offshore funds, - Switzerland's history of neutrality When the Fed buys bonds, bank reserves (4) __________, which reduces the need for banks to borrow. Copper After the repairs, the decision was made to see if the number of defective products made was still close enough to the long-standing production quality. Anyone can write the bill, but it has to be introduced by a member of Congress. When supply shifts cause a downturn in the economy: monetary policy is much less likely to restore the economy to its pre-recession conditions. Q. refers to government revenue, spending, and debt. Which of the following statements is TRUE of expansionary monetary policy during a recession? Communist governments merely set rules and oversee production. Open market operations, discount rate, and the reserve requirement. Label the scenarios with the type of monetary policy lag represented in each. component of aggregate demand, so this shifts aggregate demand to issues involve laws that are in some way unconstitutional.(Terrorism). Which phrase best describes the economy of the former Soviet Union and present-day North Korea? In (3) _______, the newest member of the Eurozone, politicians have a great deal of control over the banking industry. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock).This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock, the bursting of an economic bubble, or a large-scale . (Refer to Quizlet Guide Picture #2). Which public health and safety agency would be most likely to investigate the safety of a new over-the-counter medicine? Which goal of foreign policy in included in all the other goals? According to Keynesian economists, why do recessions occur? Portugal To counteract a recession, the Federal Reserve should: Buy securities on the open market and lower the discount rate. What specific group takes responsibility for the actions? Johnson was directly influenced by New Deal thinking. You reply that: OMOs are the purchase and sale of gov. Principles of Economics 8th Edition ISBN: 9781305585126 (3 more) N. Gregory Mankiw 1,337 solutions Principles of Microeconomics 6th Edition ISBN: 9780538453042 (8 more) N. Gregory Mankiw 791 solutions Essentials of Investments 8th Edition ISBN: 9780077246013 Alan J. Marcus, Alex Kane, Zvi Bodie 667 solutions Contemporary Economics Refer to the following figure to answer the questions that follow. Loans - The Federal Reserve determines monetary policy in the U.S. Smaller overall progressivity in the tax code. Change ($) = ? * a. more spending b. more savings c. increase in money supply d. lower interest rates e. none of the choices Expert Solution Want to see the full answer? Which cabinet level agency oversees the U.S. Which of the following best describes the 'repeal and replace' of a law? 1. His pennies total $5000. It is sometimes above its long-run potential. - The amount a bank has on hand fulfill the cash demands of its customers and the reserve requirements of the Fed. Monetary policy works faster than fiscal policy. Economics. - Banks decide to keep some excess reserves on hand. The demand for physiotherapists, at physiotherapy clinics. Compare the 95%95 \%95% confidence interval for the proportion of students who would like to pursue science with the proportion who would like to pursue business. What are the main purposes of regulatory policies? Think of a problem or issue that concerns you. True or False: Bonds are IOU from a business or government promising to pay back the value of the bond plus interest payments _____ pay(s) the lowest interest rate. Contractionary monetary policy directly pulls money out of the loanable funds market. Expert Answer Question 8 Monetary policy generally impacts interest rates. 1. component of aggregate demand, so this shifts aggregate demand to Which agency is charged with protecting and managing national monuments? Question: 90. When the economy is __, the money leakage tends to rise; this tends to slow money creation. - The Federal Reserve purchases bonds on the open market - The Federal Reserve decreases the discount rate provides a larger incentive for firms to invest. 2011 0% Because either there is life on Mars or there is not, the probability of life on Mars is 0.50.50.5. Suppose you win on a scratch-off lottery ticket and you decide to put all of your $3,500 winnings in the bank. A decrease in the money supply will raise the interest rate, decrease investment spending and . One advantage of polymer banknotes is that they dramatically reduce counterfeiting. What is the term for this? a. Which of the following statements best describes the use of fiscal policy during a recession? Reserves - He is now 45 and deposits his savings into a bank. It reflects the repeated _expansions___ and __Contractions___of the economy. (7) ________ remained in a recession longer than other nations due to very slow economic growth. A. A. Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams. - The central bank decreases the discount rate. Consider the two examples of labour demand below. This raises the interest rate, which provides a lesser incentive for firms to invest. True or False: It limits the printing and circulation of new money. _________ indicates a short-run inverse relationship between inflation and unemployment rates. This type of fiscal policy is best used during times of economic downturn, and it can increase a country's gross domestic product (GDP) through a principle called the "fiscal multiplier" (or the amount in which government spending can increase the national income). Contractionary monetary . B. What would be the most likely predictions people make about the inflation rate for 2016 based on adaptive and rational expectations theories, respectively? A company has been running an assembly line with 97.42%%97.42 \% \%97.42%% of the products made is acceptable. It includes currency in circulation, checking account deposits and travelers checks. Suppose the economy was experiencing a. Which of the following best describes how contractionary The amount of time it takes for a policy to be implemented. Change in interest rate impacts the investment spending. A planned increase in the budget deficit. In 1988, Australia introduced a commemorative $10 banknote made of plastic (polymer). 1. Using Table 37.1 and your knowledge of macroeconomics, identify the views on macro theory and policy you would want your appointees to hold. Which resource management agency would most likely set guidelines for oil pipelines and windmills? The gender information also is included in the questionnaire. 4. Explain your reasoning. securities, which increases the amount of reserves in the banking systems and fuels deposit expansion. Which question for evaluating foreign policy should be used to determine if a policy would impact the need for troops in a region? During which century did the federal government begin to regulate businesses in the U.S.? If the supply of money decreases, what happens in the money market? Explain why the U.S. demand for Mexican pesos is downsloping and the supply of pesos to Americans is upsloping. The reserve requirement %5. The Federal Deposit Insurance Corp. (FDIC) protects bank depositors from bank failure. For instance, when the Fed buys bonds, this (2) _________ in demand for bonds causes nominal interest rates to (3) _________. A new technology is discovered that promises an increase in cheap computing power in the future. The economy has entered a recession with high unemployment. loanable funds market. The following are the main limitations of the monetary policy adopted by the Reserve Bank: 1. Explain the sequence of links connecting an expansionary monetary policy with interest rates, intended investment, aggregate demand, and output. Suppose a wealthy family decides to move $50 million from their Swiss bank account to their Bank of America account. Refer to the following figure to answer the questions that follow. This lowers the interest rate, which Data on GDP is release quarterly, meaning that an economic downturn beginning in January may not be identified until more than three months later. Suppose that the Fed engages in an expansionary monetary policy, which reduces interest rates. b. Calc. Which of the following best describes how contractionary Consider the graphs, which show aggregate supply (AS) and the change in aggregate demand (AD) from AD1 to AD2 that will result from the monetary policies. In general, because of policy lags, which of the following is true? Most often, the prices that are inflexible are: Which of the following best describes how expansionary monetary policy affects the aggregate demand curve in the aggregate demand-aggregate supply model? In the years leading up to the financial crisis of 2008-2009, the market for housing can be described as: booming, driven by rising prices and increased demand due to low interest rates. It helps us predict future changes in the atmosphere or climate. - Minting coin currency new.money. 'Crowding out' refers to which of the following? The equation of exchange, M x V = P x Q, relates to the quantity theory of money. groups of individuals and/or private corporations coming together and trying to solve global problems. Investment is a The share of deposits that banks must have in reserves is the __________. If the economy is at potential output prior to the . Which of the following best describes the sequence of events in the conduct of contractionary monetary policy using open market operations (in an economy with low inflation and a stable banking system)? - Increases real GDP in the short run, Is not a result of contractionary monetary policy (tight money policy). Central banks can use monetary policy to: make it easier for people and businesses to borrow. the money multiplier for the U.S. in this ex. The _______ rate influences nearly all other interest rates in the economy. Compile your fi ndings, and share D. The stock of money consists largely of notes and coins. Which public health and safety agency would be most likely to investigate the safety of a new over-the-counter medicine? 2015 6%. B. A decrease in the money supply will lower the interest rate, increase investment spending, and increase aggregate demand and RGDP. She checks out the price tag and is excited to see that the dress is on sale and is now relatively cheaper than another dress she was considering. The bank will raise interest rates to make lending more expensive. Spain Suppose the table below lists the actual annual inflation rates for 2010 to 2015. Contractionary monetary policy is when a central bank uses its monetary policy tools to fight inflation. State laws. C. An increase in the real interest rate is necessarily accompanied by either an increase in the nominal interest rate, an increase in the inflation rate, or both. real gross domestic product (GDP); unemployment. Determine the 35% recommended maximum for monthly housing costs. lower unemployment in the short run, higher inflation in the long run. - Reserves are the funds banks keep on hand to meet Federal Reserve requirements. provides a larger incentive for firms to invest. Economics questions and answers. Banks typically loan out a portion of customer deposits. the loanable funds market. Which of the statements describes an implication of this equation in the long run? Holding all else constant, in the short run, a decrease in the money supply can cause: a decrease in real gross domestic product (GDP). What is the value of this expansionary gap? Changes in the money supply (M) will balance out with changes in prices (P). The SRAS curve shifts rightward. An automatic stabilizer is BEST defined as _____. (Refer to Quizlet Guide Picture #1), What are the bank's reserves in Table 2? It includes currency in circulation, checking account deposits and travelers checks. Which of the following statements is NOT true regarding fiscal and monetary policy? Q. Which step in the rule-making process makes the new regulations available to the public for review? The Fed is extremely transparent with regard to monetary policy and discloses goals, targets, and predictions for the macroeconomy. Which of the following is a tool that the U.S. president can use on his or her own to affect foreign policy? C. Money is always the best possible store of value. Money can be created in the US economy only by printing more paper money. Transcribed Image Text: Suppose the demand for a product is P = 150-Q and that the marginal cost of producing the product is $30. securities as a form of monetary policies This lowers the interest rate, which provides a larger incentive for firms to invest. - Increasing the reserve ratio will _________ the money multiplier. - Increases consumer spending Which statement best describes how the circular economic flow will be affected by this action? Dianne buys stock in Starbucks. True or False: According to the figure, if the economy started at full-employment output, expansionary monetary policy would cause real gross domestic product (GDP) to ______________ in the short run. 2. The total change in the M1 brought about the money multiplier is affected by the amount of deposits made by households and businesses. It is a medium of exchange, a unit of account, and a: The M1 definition of the money supply used by the government includes: Currency and demand deposits (checking/debit accounts). Which of the following would be LEAST likely to occur during an expansionary gap? Contractionary monetary policy directly pulls money out of the loanable funds market. Gross pay of $1,298 and$1,060. - The Federal Reserve reduces the rate of interest that it charges to commercial banks on loans, Classify the actions described as examples of expansionary monetary policy (intended to stimulate the economy), contractionary or restrictive monetary policy (meant to slow down the economy), or not an example of monetary policy. The market for loanable funds most specifically connects: ______ minimize the risk of lending money by pooling money from many savers and lending to many borrowers. 2. Suppose the Fed sells $200 billion in gov. Contractionary monetary policy directly pulls money out of What was the U.S. government required to establish, according to its Constitution? Decrease disposable income and slow down the economy. Which of the following tax codes is most progressive? B. American Government module 3 Exam study guide, Module 5 Principles of American Democracy, Christina Dejong, Christopher E. Smith, George F Cole. ___________________. Bitcoins Excess Reserves = ? It's how the bank slows . You need to appoint a new person to this position, as well as a person to chair your Council of Economic Advisers. How does it affect the accounting equation? Why is an 'expansionary gap' sometimes referred to as an 'inflationary gap'? According to the U.S. constitution, what role should federal courts play in lawmaking? I love you Bubbas. A recent example of expansionary monetary policy was seen in the U.S. in the late 2000s during the Great Recession. The short-run Phillips curve is ________________ and the long-run Phillips curve is ________________. Which of the following is true regarding capitalism and communism? TO increase money supply, we will buy gov. (4) ________ was unable to cut the gov. - The ability to attract foreign direct investment - The Federal Reserve increases the percentage of deposits that commercial banks are required to keep in their vaults, Contractionary (restrictive) monetary policy, Classify the actions described as examples of expansionary monetary policy (intended to stimulate the economy), contractionary or restrictive monetary policy (meant to slow down the economy), or not an example of monetary policy. How should fiscal policy be used in an inflationary economy? - Managing China's money supply. According to the figure, contractionary monetary policy will cause an economy that is initially at full-employment output to go from equilibrium __________ to equilibrium __________ in the short run. Which of the following ensures the right of workers to seek safety and health on the job without fear of punishment? President Lyndon B. Johnson created a set of programs that were known as the Great Society. True or False: Assume of 8% reserve requirement in the U.S. and no money leakages: A contractionary policy is a tool used to reduce government spending or the rate of monetary expansion by a central bank to combat rising inflation. Change ($) = $4 million Among the roles that money serves in an economy, money is considered a unit of account. d. The General Duty Clause. According to the permanent income hypothesis, which situations would result in an immediate increase in consumer spending, which would result in an immediate decrease in consumer spending, and which would result in no change in consumer spending? According to the permanent income hypothesis, which situations would result in an immediate increase in consumer spending, which would result in an immediate decrease in consumer spending, and which would result in no change in consumer spending? As it relates to the European Union, what is the ECB? - The President signs legislation that extends the duration of unemployment benefits for people that are out of work Contractionary policies are implemented during the expansionary phase of a business cycle to slow down. 2. increase The choices offered in the questionnaire are science, business, and other. Which policy is appropriate when a rising aggregate price level is a concern but GDP is growing at an acceptable rate? Bank of America Liabilities = Deposits It should decrease government spending and increase taxes to decrease aggregate demand. Which one of the following statements is correct? risk. answer choices . Transcribed Image Text: K- the graph to the right represents the market for DVDs The value of consumer surplus is $40 million (Enter your response as an integer) The value of producer surplus is $20 million (Enter your response as an integer) Using the triangle drawing tool twice, draw consumer and producer surplus Properly label each triangle Carefully follow the instructions above and only . Higher interest rates resulting from borrowing to conduct expansionary fiscal policy. the loanable funds market. answer choices Contractionary Fiscal Policy Expansionary Fiscal Policy Contractionary Monetary Policy Expansionary Monetary Policy Question 7 30 seconds Q. refers to government revenue, spending, and debt answer choices Fractional Reserve Banking Legal Reserves Fiscal Reserve system Question 8 60 seconds What are the primary goals of fiscal and monetary policy? Business Economics Classify the actions described as examples of expansionary monetary policy (intended to stimulate the economy), contractionary or restrictive monetary policy (meant to slow down the economy), or not an example of monetary policy. Imagine that your are the writer of a newspaper column in which you answer letters from teens seeking advice. Who does the U.S. Constitution assign sole responsibility for the budget and federal taxation? What is the total change in the M1 money supply from this one deposit? The fractional reserve banking system requires all banks to keep the total value of customer deposits in their vault to prevent bank runs. It limits the printing and circulation of new money. His pennies total $5000. If the supply of money increases, what happens in the money market? Ireland home, at school, or at work? Remember, the economic health of the entire nationand your chances for reelectionmay depend on your selection. The Federal Reserve generally uses ___________________ to implement monetary policy. so the chairman recommends: Which statement best describes the Federal Reserve's current level of transparency to the American public? The short run effects of quantitative easing are a(n) ________ in the price level with a long run ________ in the real value of money. risk? Which of these represents the federal government's first intervention in how U.S. businesses operate? Which event is most likely an outcome of research by the Environmental Protection Agency? Which approach to fiscal policy involves and increase in taxation and decrease in spending? This raises the interest rate, which During deflationary periods, central banks reduce their policy rates to as low as zero. Lower tax rates on interest earned from savings. Contractionary or restrictive monetary policy (tight money policy) will cause interest rates to: When current output is greater than potential output, which of the given monetary policies is the Federal Preserve (Fed) likely to enact? 101010 people in your neighborhood or A. an increase in the pace of domestic GDP growth. - Supply of money d. Contractionary monetary policy directly puts money into the In the long run, as resource prices rise, the short-run aggregate supply curve shifts to the left, bringing the economy back to a long-run equilibrium where no real changes to GDP have occurred. Classify each of the variables listed by the policy's short run effect upon them. In the long run, ____________ prices adjust. The reserve requirement is the proportion of its deposits that a bank must keep on hand and not use to create money through making loans to borrowers. Which of the following best describes the 'repeal and replace' of a law? If two firms were initially competing in a Cournot oligopoly and then try to collude to maximize joint profits, what is the profit that firm 1 would actually get, given its best response function, assuming that firm 2 is producing the colluding quantity? Which form of communication currently plays the most immediate role in broadcasting politicians' positions on public policy? Revenue for businesses will increase. - The Federal Reserve decreases the discount rate Inflation is a sign of an overheated economy. Correct Answer: $900 Question 12 A decrease in the discount rate would: Correct Answer: increase bank borrowing of reserves and reflect an expansionary monetary policy. Wages for workers will increase. Which of the following statements is FALSE regarding the government's fiscal policy toolkit? Assume a required reserve ratio of 10%. - Real GDP a. Horses Tags: Question 7 . Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Chapter 10-Climate Change, Public Health and. Which of the following best describes the cause effect chain of contractionary monetary policy? demandaggregate supply model? Which phrase best defines the term policy? 2014 6% a. Question 14 Contractionary . You calculate that price elasticity of demand for this drug at the current market price is -1.4. True or False: (nearest tenth), Suppose a wealthy family decides to move $50 million from their Swiss bank account to their Bank of America account. since monetary policy shifts the aggregate demand curve, it was not able to deal with the aggregate supply issues that led to the Great Recession. Monetary policy consists of the actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects . True or False: That's when prices rise too fast in clothing, food, and other necessities. Classify the actions described as examples of expansionary monetary policy (intended to stimulate the economy), contractionary or restrictive monetary policy (meant to slow down the economy), or not an example of monetary policy. Which form of foreign aid involves many nations sharing a common goal and jointly contributing to a common fund? So, What specific group takes responsibility for the actions? Your are Chair of the Federal Reserve Board. 2. Year Actual Inflation rate In spite of many bank failures, the people of (6) ________ did not want investors and banks to receive a gov. Which of the following statements best descrbes the impact of this event on the stock market? Explain the U. monetary policy experience of the 2000-2017 period in the context of Federal Reserve priorities and monetary policy actions. Check all that apply. B. Cost-push inflation is described as too much money chasing too few goods.. Which of the following best describes an contractionary monetary policy? questions relating to the Problem Solving framework statements highlighted in the Coursebook. If things arent going wellunemployment is high growth is lowthen more money flowing around the economy makes it easier for people to get . Firms announce that they expect more layoffs next year than were previously anticipated. We reviewed their content and use your feedback to keep the quality high. component of. The higher taxes are, the less economic growth there will be. Suppose a wealthy family decides to move $50 million from their Swiss bank account to their Bank of America account. The most appropriate countercyclical policy, or stabilization policy, in times of unemployment, according to Classical economists, is for the government to do which of the following? The European Central Bank, responsible for monetary policy within the European Union. What is the amount that Robina Bank must keep on hand as required by the Federal Reserve (Fed)? What is the appropriate contractionary fiscal policy response when inflation goes from a 3% to 10% annual rate and real GDP rises from 2% to 10%? Which of the following is a possible explanation as to why this policy failed to restore the economy to long- run equilibrium. According to the U.S. constitution, what role should federal courts play in lawmaking?

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