Which of the following are John Maynard Keynes' motives for holding money rather than investing? (Check all that apply) A. Transaction Motive B. Value Motive C. Precautionary Motive D. Speculative Motive E. Inflation Motive
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Which of the following are John Maynard Keynes' motives for holding money rather than investing? (Check all that apply)
A. |
Transaction Motive |
|
B. |
Value Motive |
|
C. |
Precautionary Motive |
|
D. |
Speculative Motive |
|
E. |
Inflation Motive |
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- Discuss "Money is not real. It is a conscious agreement on measuring value." -- John Ralston Saul Do you agree or disagree with the statement by JR Saul? Post your thoughts. 2. an Internet search of the famous words "irrational exuberance" and read a few articles. Post links to the articles and provide additional input. Here are a couple of questions to guide the discussion: What do you think Greenspan meant by the term "irrational exuberance"? Are/were the markets irrational? 3. Monetary Policy In the mid-1970s and early 1980s, why was the bank not able to meet its target inflation rate of 2%? What is the "too big to fail" issue? Why do you think Canada has been able to weather the economic storms better than the United States? Why was the Financial Stability Board established? Was it really necessary? Does Mark Carney address those arguments that would refute the use of interest rate targeting as an effective monetary policy? thanksEconomics Suppose the difference between the transactions velocity and the income velocity of circulation of money in an economy is 5 and the money value of total transactions is 6 times the money value of aggregate income. If the quantity of money in circulation is 1000 currency units, then the money value of aggregate income in currency units is (a) 1000 (b) 1200 (c) 1500 (d) 1800 please write and explain in paper1. Differentiate between real flows and monetary flow. 2.Briefly describe the concept extrapolation.
- 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.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 requirements2. How does a very high rate of inflation affect individual spending and saving? Explain your answer.
- 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…Answer the following: 2. Which of the following is the MOST valid assumption about money? * A. Money may alter one’s perspective about other people who have less than what they have. B. The more money you have, the more law-abiding and charitable you also become. C. More people are motivated by business value than social value in times of crisis. D. When people are money conscious, they tend to share financial burdens with others. 5. Considering the different influences of money on people, whose opinion is least likely to be FALSE? A. In a webinar about cryptocurrency, Elon says, “money only influences those who do not have much of it. At a certain point, money becomes irrelevant to people” B. Juan, whose Honda Civic was damaged by a speeding Ferrari, angrily shouts, “Rich people don’t care! They can just hire lawyers or pay-off judges to rip off poor people like me! It’s the rich who are unlawful!” C. Kim Karrot, born to affluent…Question 1 a. Increasing prices erode the purchasing power of the dollar. It is interesting to compute what goods would have cost at some point in the past after adjusting for inflation. Go to the Federal Reserve Bank of St. Louis, FRED database website at https://research.stlouisfed.org/fred2/and find the consumer price index for all urban consumers. What would a car that cost $25,000 today have cost the year 1996? b. Many countries have central banks that are responsible for their nation’s monetary policy. Go to www.bis.org/cbanks.htm and select one of the central banks (for example, ECB, Norway). Review that bank’s Web site to determine its policies regarding application of monetary policy. How does this bank’s policies compare to those of the U.S. central bank?
- 1. Name & explain the three advantages of a monetary economy.assume that the economy is operating in a recessionary. explain all the steps which the bank of canada should take in order to fix this problem. 2 graph is needed along with the explanation.1. True or False a) John Maynard Keynes listed three types of motives for people holding money—transactions, precautionary, and speculative. b) Starting from equilibrium in the money market, suppose the money supply increases. Other things being equal, this will cause an excess demand for money, leading people to sell bonds. c) If the Fed uses its tools to expand the money supply, bond prices will be bid up and interest rates will fall. d) Investment is lowered by expansionary monetary policy. e)Monetarists argue that the Treasury's conduct of fiscal policy is the most important factor affecting real GDP and interest rates.