According to Monetary neutrality and classical macroeconomics, the increase in money supply ________________________ (a) Increase the GDP deflator (b) decrease the GDP deflator (c) Increase real GDP (d) decrease real GDP (e) both GDP deflator and real GDP do not change
Q: 43) Pieces of property that serve as a store of value are called OA) assets. OB) units of account. O…
A: A store of value is an item, commodity, or money that can be preserved, recovered, and traded…
Q: Explain UK small business with appropriate examples
A: A small company is one that operates on a small scale and requires less capital investment, fewer…
Q: QUESTION 4 With the help of diagram, explain if the appropriate macroeconomic policies to defend…
A: Balance of payment Balance of payment refers to the statement of a country which may show the net…
Q: In experimental studies, most participants adhere to the tenets of utility maximi: ation theory,…
A: Individuals and organizations strive for the maximum amount of enjoyment from their economic…
Q: Economics d3.Meritocracy and fiscal prudence are two of the key principles upheld in the governance…
A: Meritocracy and fiscal prudence Meritocracy as a concept is still relevant since it protects…
Q: Refer to the table below for a very simple economy producing three goods: movies, pizzas and cars.…
A: GDP is the value of final goods and services produced in the economy within a given period of time.…
Q: Which of the following are macroeconomic issues? (Select all that apply.) Where will Google locate…
A: Macroeconomics is a discipline of economics that investigates how an entire economy, the market, or…
Q: On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points…
A: Cost is the sum of variable cost and fixed cost. Fixed costs remain the same at each level of…
Q: If the goal of the Central Bank is to control inflation, after a positive demand shock caused by an…
A: The central bank us the authority that controls the supply of money in the economy and prints…
Q: Assume that the Bank of Korea believes that the KRW should be depreciated against the U.S. dollar.…
A: A currency crisis may be both predicted and unexpected.
Q: Amy and Barbara share an office. They put a scent diffuser in the middle of the room, and they need…
A:
Q: Specialization is economically useful because it can Question 7 options: Help workers develop…
A: Economies of scale are cost benefits harvested by organizations when creation becomes effective.…
Q: Explain three issues with the funding gap management.
A: Concept of Funding gap A funding gap - the total quantity of money necessary to finance a firm's or…
Q: 44) Everything else held constant, if the expected return on ABC stock rises from 5 to 10 percent…
A: At the marketplace, expected returns refers to the estimation of gain from making investment by…
Q: Tgrushka is a Russian firm, and it is the only seller of wooden dolls in Russia and France. Suppose…
A: Price discrimination is a selling strategy that charges clients various prices for a similar item or…
Q: Method 2: Meanwhile, the other employee proposes using a different strategy to achieve the…
A: Tradable pollution permits give firms a legal right to pollute a certain amount per fixed time span.…
Q: “The world’s poorest countries cannot find anything to export. There is no resource that is…
A: A comparative advantage, when joined with streamlined commerce standards, permits even little,…
Q: How does a depreciation or devaluation of a nation’s currency operate to eliminate or reduce a…
A: Introduction A country devalues its currency to combat a trade imbalance, which means that an…
Q: The cost of the basket of goods in a particular year was $78.00 while in the base year the cost was…
A: In the measurement of an economic activity or an economic index, a base year is utilised for…
Q: Demand function is D(p) = 65-p. There are unknown number of firms with a total cost function C(q)=…
A: The relationship between the quantity demanded for a commodity and its price is represented by the…
Q: I have an economics assignment in which the country that i choose is United States of America and…
A: The quick contraction and profound uncertainty about the virus's and economy's outcomes generated a…
Q: For the transactions shown below, determine the amount of money in the account at the end of year 3…
A: The total amount of cash and cash equivalents a corporation receives and expends cash is referred to…
Q: 10% (*) 5% (rº) 3% (D¹) S,I Decrease of G →→$' I 80 100 120 More Surplus International Col S,I
A: For a small open economy,Savings - Investment = Net exports.
Q: Subject: Manegerial economics & policy Using the information in the following table, determine how…
A: Answer: Theoretically, profit maximization occurs where the marginal cost (MC) and marginal revenue…
Q: conomics 1. With the help of example, compare and contrast the method of measuring opportunity…
A: Cost refers to the monetary value that is spent by the business while running its operations.
Q: Suppose that you put $4,500 in a savings account at the beginning of the year and that you are…
A:
Q: nount of commercials that could be ed during children's television shows, fectively reducing the…
A: Price Elasticity of Demand: Price Elasticity of demand is the degree of responsiveness of % change…
Q: 5. Using carefully labelled diagrams, indicate the expected impact on the labour force participation…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: 2. Graphing demand for labor and computing the optimal quantity of labor demanded A company operates…
A: Marginal product is the additional output produced by employing an additional worker. Value of…
Q: (Figure: Maximize Monopoly Profits) Refer to the figure. The monopolist will maximize its profit by…
A: In a monopoly, there is a single firm and the firm sells unique good. This allows the firm to have…
Q: One way governments can charge firms for pollution rights is by imposing a per-unit tax on…
A: The measure that depicts the benefit or cost being caused by the producer not being received or…
Q: Describe the difference between nominal interest rate and real interest rate?
A: In economics, interest rate is classified as nominal interest rate and real interest due to the…
Q: Supply Money Demand 80 100 Money Demand -O Money Supply
A: The equilibrium level of pay is the place where a business can sell every one of the merchandise it…
Q: Wilson Bryant Air Conditioning, a Middle Georgia HVAC company, wanted to build a web-based project…
A: Cash flow is a metric that shows how much money a company has brought in or spent over a certain…
Q: Think about several different types of industries or markets and the amount of time it might take to…
A: The measure that depicts the size of business operations that are being measured by the maximum…
Q: In Chapter 6, we said that taxes create deadweight losses. When we tax goods with external costs,…
A: Deadweight loss is the decrease in total surplus when socially efficient quantity is not produced.
Q: How much is Jane’s deductible? What percentage of the bill does Jane’s health care plan pay once…
A: When Jane hasn't reach her deductible, then:- Office costs= $125 Jane pays= $125 Her plans pays= $0…
Q: What is the value of the variance of the sample regression S₂²? (Hint: What is the regression d.f.?)…
A: First we need to calculate sum of squared estimate of errors SSE = (1-R^2) * SST =(1-0.229029)…
Q: Which of the following are macroeconomic issues? (Select all that apply.) Where will Google locate…
A: Macroeconomics is the study of global economies from top to bottom, with a focus on large-scale…
Q: discuss the notion of efficient markets when extended to international financial markets.
A: According to the Efficient Market, all stocks trade at their true value. The idea believes that…
Q: Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada, specializing…
A: The interest rate is the rate you will be charged on the equilibrium of your advance. This…
Q: The portion of a long run average cost curve that is downward sloping is called the range of: Group…
A: When talking about long-run average cost curve, it is the cost curve,.which helps to analyze the…
Q: Question 10 An open economy is defined by C=100+0.8(Y-T) I=400 X=0.3Y* IM=0.3Y T=1000, G=1000,…
A: Gross Domestic Product (GDP) is the measure of an economy’s total production of goods and services.…
Q: Making the assumption of no compounding interest , suppose you purchase a perpetuity bond from…
A: Firstly we have to calculate Yearly Return Yearly return = Face value x Coupon rate =…
Q: 5. The following table shows the unemployment rates for Blacks in Miami and in four comparison…
A: Unemployment Unemployment refers to people who are employable but can't find work. The above group…
Q: A firm has 1.5 million shares of common stock outstanding with a book value of $10 share. The firm…
A: Liability means an obligation that arises from a past business event.
Q: Describe in detail how Diminishing Marginal Product arises from the assumption that some of a…
A: When additional variable inputs are used, the marginal product from the extra use of the variable…
Q: interest rate as 12% per year, compounded continuously, calculate the effective continous interest…
A: Given Interest rate = 12% Effective quarterly interest rate : ERI = [ 1 + (Nominal Interest rate…
Q: An international textile company's North America Division must decide which type of fabric cutting…
A: The Yearly Value (AW) Analysis is defined as the equivalent uniform yearly value of all predicted…
Q: What variables cause the simple sticky price AS curve to shift? What variables cause the partial…
A: The aggregate supply curve estimates the connection between the value level of products provided to…
4. According to Monetary neutrality and classical
(a) Increase the
(b) decrease the GDP deflator
(c) Increase real GDP
(d) decrease real GDP
(e) both GDP deflator and real GDP do not change
Step by step
Solved in 2 steps
- 3. 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 requirementsQ.1.6 Which of the following will cause the demand curve for money to shift to theright?(a) An increase in real Gross Domestic Product (GDP).(b) A decrease in the repo rate.(c) An increase in the quantity of money available.(d) A decrease in the quantity of money available.Q.1.7 A budget deficit occurs when: (a) there is an increase in taxation.(b) government spends less than is generated by taxation.(c) government spending is very high.(d) Government spends more than is generated by taxation.What does the term exogenous money supply mean? a. The money supply is determined by external factors b. The money supply is controlled by households c. The money supply is determined by the central bank d. The money supply is determined by market forces.
- 1.Monetary equilibrium occurs when theQuestion options: A) supply and demand for all goods in the economy are equal at the current rate of interest. B) existing supply of money is willingly held by households and firms in the economy at the current rate of interest. C) growth in the money supply is zero. D) the money supply is growing at a constant rate. E) nominal rate of interest equals the real rate of interest. 2.The economy starts in long-run equilibrium. After an initial shock, and the subsequent adjustment process, the economy ends up at a point with a higher price level and the initial level of real GDP. Which of the following initial shocks would explain this?Question options: a) An increase in desired savings. b) An increase in government transfer payments. c) An appreciation of the Canadian dollar. d) An improvement in production technology. e) An increase in the cost of factor inputs. 3.The economy starts in long-run equilibrium. After an initial shock, and the subsequent…1. Name & explain the three advantages of a monetary economy.Which of the following statements is false A. Money is not a comsumption or a capital good B. An increase in the money supply does not confer a general benefit on society C. Economic theory cannot tell us generally which groups benefit and which groups are injured by inflation D. Economic theory cannot tell us the supply of money that is proper for an economy to have
- In an economy where the central bank implements negative interest rates as a monetary policy tool, what is the most likely short-term impact on consumer savings behavior and bank profitability? A. An increase in consumer savings as people seek to safeguard their money and a rise in bank profitability due to increased lending. B. A decrease in consumer savings as the incentive to save diminishes and a decrease in bank profitability due to lower interest margins. C. No significant change in consumer savings behavior but an improvement in bank profitability due to lower borrowing costs. D. A shift in consumer investment towards riskier assets and challenges in bank profitability due to compressed interest margins. Please don't use chatgpt it is giving wrong answer and please provide valuable answer9. In response to the Great Recession, the Federal Reserve took drastic and largely untested measures to stabilize both the financial system and the macro- economy. These measures caused the monetary base to increase from approximately $850 billion to over $4 trillion. What would an economist from each of the following viewpoints-classical, Keynesian, monetar- ist, real business cycle, Great Moderation consensus, and secular stagnationists-predict about the effect of these policies, and why? Indicate whether each school would support the Fed's actions.3. If the economy is at the natural rate of unemployment with the level of real GDP at potential output, what would expansionary fiscal or monetary policy do to the economy? How would the economy be affected in the short run and long run?
- Which of the following reduces the interest rate? a. a decrease in government expenditures and a decrease in the money supply b. an increase in government expenditures and an increase in the money supply c. an increase in government expenditures and a decrease in the money supply d. a decrease in government expenditures and an increase in the money supplyHow does Stephanie Kelton’s explanation of Modern Monetary Theory4 (MMT) affect your view of government spending? Provide specific examples and describe how MMT contributes to your understanding.1. Higher rates of inflation Select one: a. have no effect on real marginal tax rates, and no effect on savings and investment. b. reduce real marginal tax rates, reducing savings and investment. c. reduce real marginal tax rates, increasing savings and investment. d. increase real marginal tax rates, reducing savings and investment. 2. The money multiplier would increase with: Select one: a. a decrease in the level of Central Banks open-market purchases. b. a decrease in the monetary base. c. a decrease in the public's desired currency to checkable deposit ratio. d. a decrease in M1.
