Principles of Economics 2e 2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: Steven A. Greenlaw; David Shapiro
1 Welcome To Economics! 2 Choice In A World Of Scarcity 3 Demand And Supply 4 Labor And Financial Markets 5 Elasticity 6 Consumer Choices 7 Production, Costs, And Industry Structure 8 Perfect Competition 9 Monopoly 10 Monopolistic Competition And Oligopoly 11 Monopoly And Antitrust Policy 12 Environmental Protection And Negative Externalities 13 Positive Externalities And Public Goods 14 Labor Markets And Income 15 Poverty And Economic Inequality 16 Information, Risk, And Insurance 17 Financial Markets 18 Public Economy 19 The Macroeconomic Perspective 20 Economic Growth 21 Unemployment 22 Inflation 23 The International Trade And Capital Flows 24 The Aggregate Demand/aggregate Supply Model 25 The Keynesian Perspective 26 The Neoclassical Perspective 27 Money And Banking 28 Monetary Policy And Bank Regulation 29 Exchange Rates And International Capital Flows 30 Government Budgets And Fiscal Policy 31 The Impacts Of Government Borrowing 32 Macroeconomic Policy Around The World 33 International Trade 34 Globalization And Protectionism A The Use Of Mathematics In Principles Of Economics B Indifference Curves C Present Discounted Value D The Expenditure-output Model Chapter28: Monetary Policy And Bank Regulation
Chapter Questions Section: Chapter Questions
Problem 1SCQ: Why is it important for the members of the Board of Governors of the Federal Reserve to have longer... Problem 2SCQ: Given the danger of bank runs, why do banks not keep the majority of deposits on hand to meet the... Problem 3SCQ: Bank runs are often described as self-fulfilling prophecies. Why is this phrase appropriate to bank... Problem 4SCQ: If the central bank sells 500 in bonds to a bank that has issued 10,000 in loans and is exactly... Problem 5SCQ: What would be the effect of increasing the banks reserve requirements on the money supply? Problem 6SCQ: Why does contractionary monetary policy cause interest rates to rise? Problem 7SCQ: Why does expansionary monetary policy causes interest rates to drop? Problem 8SCQ: Why might banks want to hold excess reserves in time of recession? Problem 9SCQ: Why might the velocity of money change unexpectedly? Problem 10RQ: How is a central bank different from a typical commercial bank? Problem 11RQ: List the three traditional tools that a central bank has for controlling the money supply. Problem 12RQ: How is bank regulation linked to the conduct of monetary policy? Problem 13RQ: What is a bank run? Problem 14RQ: In a program of deposit insurance as it is operated in the United States, what is being insured and... Problem 15RQ: In government programs of bank supervision, what is being supervised? Problem 16RQ: What is the lender of last resort? Problem 17RQ: Name and briefly describe the responsibilities of each of the following agencies: FDIC, NCUA, and... Problem 18RQ: Explain how to use an open market operation to expand the money supply. Problem 19RQ: Explain how to use the reserve requirement to expand the money supply. Problem 20RQ: Explain how to use the discount rate to expand the money supply. Problem 21RQ: How do the expansionary and contractionary monetary policy affect the quantity of money? Problem 22RQ: How do tight and loose monetary policy affect interest rates? Problem 23RQ: How do expansionary, tight, contractionary, and loose monetary policy affect aggregate demand? Problem 24RQ: Which kind of monetary policy would you expect in response to high inflation: expansionary or... Problem 25RQ: Explain how to use quantitative easing to stimulate aggregate demand. Problem 26RQ: Which kind of monetary policy would you expect in response to recession: expansionary or... Problem 27RQ: How might each of the following factors complicate the implementation of monetary policy: long and... Problem 28RQ: Define the velocity of the money Problem 29RQ: What is the basic quantity equation of money? Problem 30RQ: How does a monetary policy of inflation target work? Problem 31CTQ: Why do presidents typically reappoint Chairs of the Federal Reserve Board even when they were... Problem 32CTQ: In what ways might monetary policy be superior to fiscal policy? In what ways might it be inferior? Problem 33CTQ: The term moral hazard describes increases in risky behavior resulting from efforts to make that... Problem 34CTQ: Explain what would happen if banks were notified they had to increase their required reserves by one... Problem 35CTQ: A well-known economic model called the Phillips Curve (discussed in The Keynesian Perspective... Problem 36CTQ: How does rule-based monetary policy differ from discretionary monetary policy (that is, monetary... Problem 37CTQ: Is it preferable for central banks to primarily target inflation or unemployment? Why? Problem 38P: Suppose the Fed conducts an open market purchase by buying 10 million in Treasury bonds from Acme... Problem 39P: Suppose the Fed conducts an open market sale by selling $10 million in Treasury bonds to Acme Bank.... Problem 40P: All other things being equal, by how much will nominal GDP expand if the central bank Increases the... Problem 41P: Suppose now that economists expect the velocity of money to increase by 50 as a result of the... Problem 42P: If GDP is 1,500 and the money supply is 400, what is velocity? Problem 43P: If GDP now rises to 1,600, but the money supply does not change, how has velocity changed? Problem 44P: If GDP now falls back to 1,500 and the money supply falls to 350, what is velocity? Problem 11RQ: List the three traditional tools that a central bank has for controlling the money supply.
Related questions
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Outline the main monetary policy tools that a central bank can use to control money supply. To what extent have they been effective in recent years? What is liquidity trap?
Definition Definition Policy implemented by the central bank of a country (such as the Federal Reserve in the United States) to achieve certain macroeconomic objectives. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.
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