Money demand is likely to increase the most during which part of the business cycle? OA. peak B. recession C. contraction OD. trough OE. recovery
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- Money demand is likely to increase the most during which part of the business cycle? A. recession B. trough Ос. рeak O D. contraction O E. recoveryAssume GDP is currently $10,800 billion per year and the quantity of money is $540 billion. a. What is the velocity of money?When fighting a recessionary gap, central banks will amount of loans being provided by commercial banks. Select one: a. Increase; decrease b. Decrease; increase the bank rate in order to
- Strong regularities in the comovements between money supply measures and real GDP A. cannot be explained. B. were observed by Friedman and Schwartz after the 2008–2009 recession. C. were once a strong regularity in Canadian data, but is no longer. D. were observed by Friedman and Schwartz in the historical Canadian data. E. were not historically a strong regularity in Canada, but now it is.If there is a shortage of money in the economy, then : A. The purchasing power of money will tend to fail B. The prices will tend to rise C. The economy will fall into a recession D. The real money supply (m/p) will increaseAn increase in ________ decreases the quantity of money people want to hold. a. the price level b. real GDP c. the interest rate d. the quantity of money
- In the short run, expansionary monetary or fiscal policy is expected to O increase; decrease. inflation and output. increase; increase. decrease; decrease. O decrease; increase.A. Discuss, with the help of diagrams, Friedman’s argument concerning the short and long-run effects of an increase in the money supply. B. Now discuss how his argument can be extended to study short and long-run effects of changes in the growth rate of a growing money supply. Both parts please.policy is when a central bank acts to increase the money supply in an effort to stimulate the economy. Select one: a.Deflationary monetary b.Expansionary monetary c.Contractionary fiscal d.Cyclical monetary e.Countercyclical fiscal
- If the Federal Reserve Bank is concerned about high inflation, they should ____________ government bonds. Group of answer choices O. sell O. print O. buy O. holdBased on the money market model, when real GDP increases, the equilibrium interest rate should Select one: a. increase the same percentage as the money supply increase. b. increase. c. stay the same. d. decrease.An economy is at full employment. The quantity of money is growing at 8.3 percent a year, the nominal interest rate is 9.5 percent a year, real GDP is growing at 5.0 percent a year, and the inflation rate is 3.1 percent a year. What is the change in the velocity of circulation? Why might it be changing? The velocity of circulation is _______. A. increasing by 3.1 percent a year B. decreasing by 0.2 percent a year C. increasing by 0.2 percent a year D. constant