If the Fed is in control of monetary policy, they can use which of the following tools in an effort to affect the supply ofmoneyO Raise or lower taxesO Decide on how much stimulus money should be offered to American citizensO Decide on the Discount rate (which is the overnight rate that the central bank lends to other banksO Increase the supply of money through spending on infrasctructure, such as building roads and bridges

Answered: f the Fed is in control of monetary…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

Identify each item as Fiscal or Monetary Policy, or Both
Determine whether each policy below is expansionary (increasing aggregate demand) or contractionary (decreasing aggregate demand) and whether it is fiscal or monetary policy. 1. The Federal Reserve buys bonds ✓ [Select] Contractionary Fiscal Policy Expansionary Fiscal Policy Expansionary Monetary Policy Contractionary Monetary Policy 3. The Federal Reserve raises the required reserve ratio. [Select] 2. Congress increases Medicare sp 4. Congress cuts defense spending. [Select]
1. As a result of an economic policy change, interest rates fall, and consumption and investment rise. This is consistent witha) A monetary expansion.b) A fiscal expansion.c) A fiscal contraction.d) A monetary contraction. 2. Under what conditions might the application of fiscal and monetary policy simply cause a change in the price level, and no change the level of national income.a) The aggregate supply curve is horizontal.b) The aggregate supply curve is vertical.c) The short run aggregate supply curve is flatter than the long run aggregate supply curve.d) The long run aggregate supply curve is flatter than the short run aggregate supply curve. 3. How might government best attempt to address the threat of long-run, structural unemployment, resulting from the globalisation of the economic environment?a) Adopt protectionist measures, such as tariffs.b) Give trade unions a formal role in economic planning.c) Increase subsidies for job retention in manufacturing industry.d) Improve…
The graph to the right shows a situation in which the economy was in equilibrium at potential GDP (at point A) when the demand for housing sharply declined. What actions can the federal government take to move the economy back to potential GDP? OA. Increase the money supply. B. Increase government spending or decrease taxes. OC. Decrease government spending or increase taxes. OD. Both A and B. 1.) Use the line drawing tool to draw the results of these actions on your graph. Label your new line(s). 2.) Use the point drawing tool to locate the new equilibrium point. Label this point 'C'. Carefully follow the instructions above, and only draw the required objects. P₁ LRAS B Y₁ Yo AD₁ Real GDP (Y) SRAS AD
4 Which of the following policies did the Fed follow after 2014? O To unwind expansionary policy measures and try to return to a normal stance of policy. O To get the economy out of a recession. O To stimulate the U.S. financial and banking systems. O To lower interest rate in an attempt to stimulate economic growth. O None of these. 5 The recent use of discretionary fiscal policy was facilitated by O the elimination of the balanced budget amendment. O the ineffectiveness of monetary policy. O changing beliefs among economists about the lags of monetary policy. O the use of automatic policy rules. O the prediction of high rates of unemployment that could otherwise occur in the future if government did nothing. 6 For real and potential GDP to be equal, the budget surplus has to be zero. O True O False
4.This is a two-part assignment using the links below plus additional resources. Using the below links interpret the monetary and fiscal policies as either expansionary or contractionary. Define which school of thought supports each of the polices. Make sure to cite at least three sources either in MLA or APA style and have a minimum of 250 words. Here are some sources to get started https://www.whitehouse.gov/issues/budget-spending/ (Links to an external site.) https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
answer with detailed explanation for 3 & 4
Does an increase in the national debt increase the sup-ply of money (Ml)? Can the money supply increase when the U.S. Treasury is running a budget surplus?

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