1. Why would an investor be willing to take a greater risk? 2. What is the impact of inflation on savings? 3. In your own opinion, what is wealth creation?
Q: 4. Between 2010 and 2016, Argentina experiencec an annual inflation rate of 25% and a similar annual…
A: Money supply: It refers to the availability of money with the public. The increase in money supply…
Q: Hyperinflation hurts: Select one: a. owners of gold b. real estate owners c. people on a fixed…
A: Hyper inflation refers to the rapid and out of control increase in the general price level. During…
Q: Background: Some years back policy makers in the Kingdom of Bahrain were faced with rising inflation…
A: In the short run, the cause of inflation is the fall in the value of the US dollar. Since the…
Q: Describe the role of money in campaigns: What kind of constitutional protections do campaign…
A: Campaign finance, otherwise called political decision finance or political gifts, alludes to the…
Q: Some years back policy makers in the Kingdom of Bahrain were faced with rising inflation caused by…
A: Marginalism refers to the study of marginal relationships and theories within the economics. The…
Q: 1.Which of the following ideas from prominent economic thinkers is the oldest? a.Control of the…
A: When talking about prominent economic thinkers, they are the people who have given various theories,…
Q: What is an implication of the neutrality of money in the long run?. (a) The economy's level of…
A: The neutrality of the money implies that the money supply does not affect the real variables such as…
Q: F-6 What is “Dark Money,” and how has it influenced political campaigns?
A: Dark money Dark Money is political funding in which the contributor is not required to be…
Q: 56. Modern Monetary Theory (MMT) rejects which of the following assumptions of classical economics…
A: Quantity theory of money assumes that the velocity of money remains constant. Velocity of money…
Q: 1.The Federal Reserve can influence financial crises because it: A)determines tax rates.…
A: Since you have posted multiple independent McQs, according to the guidelines, only the first McQ was…
Q: Background: Some years back policy makers in the Kingdom of Bahrain were faced with rising inflation…
A: As a contractionary fiscal policy measure, government expenditure is reduced and taxes are increased…
Q: Insert the missing word or phrase: 1. _____ _________ _________ - the increased costs associated…
A: Answer: 1. Shoe leather cost- the increased costs associated with making transactions that arise…
Q: 23. An understanding of the state of the economy, projections on economic growth, the floor…
A: With understanding of the macro economic picture with respect to economic structure, business…
Q: M12
A: Fiscal policy means increasing expenditure or reducing taxes. The rise in government expenditure…
Q: Background: Some years back policy makers in the Kingdom of Bahrain were faced with rising inflation…
A: The fall in the value of the US dollar was the main cause of inflation in the short run. The…
Q: Why is it important for the central bank of a country to be independent? (i) The central bank needs…
A: Central banks controls the money supply and maintain the inflation rate at desirable level through…
Q: If the nation is currently in a recession, name one thing the Federal Reserve can do to affect the…
A: The monetary policies are those policies which are enacted by the central bank of a country to…
Q: Background: Some years back policy makers in the Kingdom of Bahrain were faced with rising inflation…
A: Answer - Given in the question - That Bahraini dinar (BD) is pegged to the dollar as value of dollar…
Q: Inflation can impose significant costs and adversely distort economic systems. Indicate whether the…
A: Cost refers to the amount of money that is used to manufacture goods and services on the market. A…
Q: Source B Information about Economy X's banking system Required reserve ratio Actual reserve ratio…
A: Money supply refers to the quantity of money that is in circulation in the economy.The money supply…
Q: First, explain the concepts of income, wealth, credit and money and show how each is related to the…
A: The five terms have been asked to describe, so here is the answer: 1. Income is the money that a…
Q: 1. Identify four important strategies which consumers can adopt to deal with inflation. Evaluate the…
A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…
Q: Discuss crypto currency and blockchain technology and how they might impact the economy. Discuss…
A: Blockchain technology and cryptocurrency have the ability to completely transform supply chains and…
Q: 11. Inflation and unemployment Suppose that the government believes the economy is producing goods…
A: The demand side of monetary strategy is monetary policy, which refers to the measures taken by a…
Q: Please look up the definition of Hyperinflation and cite examples of 3 countries that have…
A: A scenario known as hyperinflation occurs when an economy's inflation rate is excessively high,…
Q: 1. The opportunity cost of holding assets as money Suppose you've just inherited $165,000 from a…
A: A proportion of the amount charged on borrowers' money is referred to as the interest rate. The…
Q: Which would be a better way for government to protect its investors from inflation: offer a bond…
A: Inflation refers to the increase in the average price level of the goods and service in an economy.…
Q: Comment on the policies of the FED and the government during the Great Recession period. How do they…
A: The term the great Recession may be a play on the term the great Depression. The great Recession…
Q: 27) During the 2008 recession, the Federal funds "Discount" rate was set by the Fed at a record low…
A: The real interest rate can be calculated using Fisher's equation by deducting the nominal interest…
Q: he sharp increase in housing prices in the lead up to the financial crisis was fueled by all of the…
A: 2008 Financial crises was because of sub-prime mortgage lending.
Q: 1. What are the requirements for a sound financial system? 2. The great economist Milton Friedman…
A: As per the guidelines, only the first question can be answered. 1. A sound financial system is…
Q: When the inflation rate is expected to increase, the real cost of borrowing at any…
A: The rate of interest is the amount of payment that is charged by a lender on a borrower for the use…
Q: 1. Inflation can cause increased wealth inequality through the Cantillion Effect. Essentially, this…
A: Desclaimer :- As you posted multiple questions we are supposed to solve only the first one . The…
Q: For the following questions, make use of provided information. Since the peak of the pandemic…
A: If the FOMC would be increasing the interest rates by the 50 basis points, it would only attract the…
Q: fill in the blanks to complete each sentence. 5. _____________________ can be called at the sole…
A: Sole Discretion refers to the right and power to determine a matter at any moment and in any manner.
Q: Economics If the Fed increases the money supply by 0.5%, will the value of money increase or…
A: The money supply is the supply of money that is controlled by the Federal Reserve of the country.…
Q: Give suitable examples for the three broad motives on the basis of which money is required by…
A: The Money DD is influenced by many factors, including income levels, interest rates and inflation,…
Q: inflation
A: The inflation depicts the price rise in an economy during a duration. It can be of different types:…
Q: 1. Name & explain the three advantages of a monetary economy.
A: Introduction A monetary economy is a system of exchange in which money is the primary unit of value.…
Q: Credit Crunch is... a) Banks lack funds so they are unable to provide credit to the public b) Banks…
A: OPTION A A situation of credit crunch arises when there is a shortage of funds with the banks which…
Q: A. If the money supply equals 100 and monetary velocity is 5, what is nominal GDP? Explain your…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: 7. Recent monetary policy of the United States Which of the following are factors that contributed…
A: Over half of the U.S. states were impacted by the housing bubble in the country. The problem with…
Answer the following questions. State your point and reason in (2) sentences.
1. Why would an investor be willing to take a greater risk?
2. What is the impact of inflation on savings?
3. In your own opinion, what is wealth creation?
Step by step
Solved in 2 steps
- QUESTION ONE The Central bank of any country is a national bank responsible for the implementation of the monetary and fiscal policy of a country in order to avert or reduce inflation. This means that the bank is a vehicle through which the government accomplishes many of its economic objectives and deliver development to its citizens. Inflation can be too toxic to an economy as it diverts the economic intentions of any government. One of the impact of increased inflation is on an increased unemployment levels (Olivia Beria, 2016).i. Using Philips Curve, illustrate how increased inflations affects unemployment levels. ii. . Real money demand refers to the amount of money people want to hold in real terms, which means adjusted for inflation. It represents the desire for individuals to hold a certain amount of purchasing power in liquid form, in order to facilitate transactionsand make purchases. The real money supply is equal to the nominal amount of M2, divided by the fixed aggregate…The true cost of debt is what? a. The interest rate b. The limits placed on people's ability to accomplish their goals c. The limits placed on other choices d. The limits placed on the ability for people to live their lives e. All of the answers are correctThe economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now stock market prices begin significant increases, causing peoples’ investments, such as their retirement accounts and other investments, to increase in value. People feel very good about the future and use their new-found wealth to buy things that they had been hesitant to purchase in the past. Include detailed answers to the following questions: 1. What would be the likely impact on the government budget and national debt of the use of these fiscal policy tools (taxes, government expenditure, transfer payments, and interest rates)? 2. How would the use of these fiscal policy tools stabilize the economy?
- The velocity of money represents: (a) Whether individuals are increasing or decreasing the quantity of money spent in an economy (b) The quantity of money available in an economy (c) The level of prices determined by the equation of exchange (d) How often money is used in a specific period of time (e) Whether currency is accepted as a medium of exchange in an economy1. What are the main reasons that the U.S. inflation surged last year? 2. What is the monetary policy the Fed (central bank of the U.S.) uses to control inflation? 3. How did the monetary policy cause the bankruptcy of Silicon Valley Bank?2-5 Kraft and Cadbury When Kraft recently bid $16.7 billion for Cadbury, Cadbury’s market value rose, but Kraft’s market value fell by more. What does this tell you about the value-creating potential of the deal? for one of the surgeries has increased by about 10% each year since 1995, whereas the other has increased by only 2% per year. Which of the surgeries has the lower inflation rate? Why?
- how inflation has caused monetary Policy to change and how? Would it be advantageous to borrow money if you expected prices to rise? Would you want a fixed-rate loan or one with an adjustable interest rate? a). List and explain the 3 tools of monetary policy discussed. Compare the rates before the pandemic, during the pandemic, and now.What tools are being used to reduce inflation? Compare all the monetary policy tools before and after inflation.Are Diamonds Forever? How much would you spend on a diamond engagement ring? If you answered around the national average of $4,000 then you too have fallen victim to one of the most incredible marketing campaigns of all time. A diamond is intrinsically worthless, and against popular belief, they really aren’t that rare. Their resale value is next to nothing. So why are we willing to spend so much on a ring? Well, we can trace that back to the 19th century. Before 1866, diamonds had been rare, but when massive discoveries were found in South Africa, the rock was on the verge of losing its value. Thats when Cecil Rhodes stepped in and founded De Beers Corporation – consolidating the mines and restricting supply, maintaining the fiction that diamonds were scarce and had inherent value. The real change was in 1938, when the company hired N.W. Ayer to increase sales. By tying their product to love, and specifically to a marriage proposal, by the end of the century, over 80% of all brides…D3) Finance Can Some Please Help Me! On the 3rd of May the RBA increased the official cash rate by 0.25%. The current official cash rate as determined by the Reserve Bank of Australia (RBA) is 0.35%. Explain to Jaleel What are the channels through which the cash rate influences Monetary policy and how does the monetary policy transmit (contributes) to the overall economy?
- How can monetary policy, fiscal policy and financial sector regulation help in the fight against climate change? What role can Central Banks play in the fight against climate change? What has been done so far and what can be further accomplished? Is there clash between the old mandate of Central Banks to keep inflation stable, have output gap of zero and prevent financial sector disruptions and the new mandate of Central Banks which also includes preventing climate change? Answer the question using proper references from research articles and journals.Question 3 It is all very well talking about a contented workforce, praise and recognition, but at times of recession, rapid change or uncertainty, a secure job and high income are the true motivators. In the real world, money is the most potent need and strongest motivator. Q.3.3 Explain the steps of the motivation process and how it applied to John.Question 1 (a) The rates of growth of money supply is 10%, of velocity of money circulation 1%, of real GDP 3%, what is the inflation rate? (b) The nominal interest rate is 7%, the inflation rate is 5%, what is the real interest rate?