Assuming the Central Bank increase the money supply (monetary policy), using diagram explain the effectiveness monetary policy when the IS curve is steeper and flatter
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- Pls help with the below homework, select the correct option. Which of the following is NOT true in the monetary intertemporal model? A.When an economic agent buys some goods with a credit card, the economic agent acquires a debt with the bank that is paid off, at zero interest, at the end of the current period. B.The supply of money is determined by the central bank. C.Interest rates are determined by the government. D.Payments by credit card would work as an alternative to currency in transactions. E.The demand for money in the model will be determined by the behavior of the representative consumer and the representative firm.Question 2 Full explain this questionMAcroeconomics assign
- Interest rate Central bankers in Widgetsa have decided that inflation is too high and contractionary monetary policy is needed. First, position LRAS where it would be if contractionary policy is needed. Then, show the short-run results of this policy action by shifting the appropriate curves on the graphs. Quantity of loanable funds Demand LRAS Supply Price level Select all of the actions that are contractionary policy choices the central bankers could use. increase taxes sell bonds to banks decrease government spending raise the interest rate for last-resort loans decrease reserve requirements Real GDP AD SRASWhat 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.Use the AD/AS model to show how increases in government spending can lead to more inflation.
- II. Illustrate cach of the following situations with a graph showing IS curve: An increase in government spending a. b. An increase in taxes III. Illustrate each of the following situations with a graph showing Fed rule curve: a. An increase in Z factors b. A decrease in the price level IV. Illustrate each of the following situations with a graph showing AS and AD curve and show the changes in cquilibrium values of the price level and aggregate output: a. An increase in the capital stock and decrease in taxes b. A decrease in energy prices and increase in Government spendingCOURSE: MACROECONOMICS - IS-LM MODEL Analyze and plot IN DETAIL the effect on the money market caused by an increase in the sensitivity of money demand to the level of income (i.e. "k*Y" in the equation of the money Market L = k*Y - h*i). Then, explain and plot how the equilibrium changes in the IS-LM model.Typed plzzz and Asap Thanks
- If a central bank buys government securities from the private sector-money markets,leading to an expansion of the money supply, other things being equal, what would theeffect be on the following?(d) Aggregate Supply(e) Aggregate Demand(f) Economic activity(g) Price level of the economy can you help giving me these 4 ans.In the basic New Keynesian model, suppose that there is an increase in government spending. • First, suppose that the central bank does nothing (accommodates the shock). Illustrate onthe graphs and explain what will be the effects on inflation and output? • Second, suppose that economy initially has inflation equal to the central bank’s inflationtarget and an output gap of zero. What action do you expect the central bank wouldundertake? Illustrate you answer on the graph and explain. PLEASE SHOW ALL HAND WRITTEN STEPS AND WORK!This is multiple choice question, Pls solve it quickly !!