Helicopter Money Primer: The possible next frontier in quantitative easing Central banks-the Fed, the Bank of Japan, the European Central bank, the People's Bank of China, and others-have bought trillions of dollars of bonds, The Fed alone has bought $4 trillion-worth. What are the Fed's policy tools and which policy tool did the Fed use to increase its assets to $4 trillion? The Fed's policy tools include O A. the required reserve ratio, discount rate, and government expenditure O B. extraordinary crisis measures, marginal tax rates, and the discount rate OC. open market operations, marginal tax rates, and government expenditure O D. the required reserve ratio, discount rate, and open market operations To increase its assets to $4 trillion, the Fed used O A. the discount rate O B. required reserve ratios O C. a printing press to print more currency O D. large-scale open market operations called quantitative easing

Helicopter Money Primer: The possible next frontier in quantitative easing Central banks-the Fed, the Bank of Japan, the European Central bank, the People's Bank of China, and others-have bought trillions of dollars of bonds, The Fed alone has bought $4 trillion-worth. What are the Fed's policy tools and which policy tool did the Fed use to increase its assets to $4 trillion? The Fed's policy tools include O A. the required reserve ratio, discount rate, and government expenditure O B. extraordinary crisis measures, marginal tax rates, and the discount rate OC. open market operations, marginal tax rates, and government expenditure O D. the required reserve ratio, discount rate, and open market operations To increase its assets to $4 trillion, the Fed used O A. the discount rate O B. required reserve ratios O C. a printing press to print more currency O D. large-scale open market operations called quantitative easing

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. The original interest rate is at 2%. Suppose the central bank decreased the money supply. Which of the following new interest rate is possible due to the change in the level of money supply? a. 1.5% b. 1.0% C. 4.0%
I need 3 answers pls
Economics Which set of actions implies that the government will raise the money supply, as measured by M1 or M2, by $100? The Fed raises the reserve requirement at small banks from 5 percent to 10 percent. Outstanding bank loans remain at $100. O The Fed reduces the discount window rate that it lends at from 5 percent to 4 percent, and discount window loans remain unchanged at $100. O The Fed shuts down a bank that has deposits and assets both exactly equal to $100 (and bank equity equal to zero). One branch of the government sells a treasury bill for $100 in order to pay for vaccine supplies, and the Fed purchases that $100 treasury bill with $100 in bank reserves. The Fed sells a $100 treasury bill to a private bank for $100 in reserves.
What are the 3 major instruments that central banks can useto control money supply? Can you explain each one? thanks.
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Why does the 'Zero Lower Bound' pose a problem for the Federal Reserve? They are unable to push short term interest rates below zero to further stimulate the economy. O At the Zero Lower Bound the Federal Reserve is forced to raise interest rates. They are unable to assist investment banks outside of the Federal Reserve system. O At the Zero Lower Bound the money multiplier is infinity.
If we observe a small decrease in the actual overnight interest rate over a several-day period, we can definitely conclude that the O a. Bank of Canada has implemented a contractionary monetary policy. O b. It is not possible to conclude any of the above. O c. Bank of Canada has implemented an expansionary monetary policy. O d. Government of Canada has reduced the money supply. O e. Bank of Canada has abandoned its inflation target.
If the Fed sells the U.S. $200 million in government bonds, the total money supply will: O not change. decrease by more than $200 million. O decrease by less than $200 million but more than $0 million. O decrease by exactly $200 million.
4. The U.S. Federal Reserve responded to the 2020 COVID-19 lockdowns by imple-menting an expansionary monetary policy, causing M2 money supply to rise from $15.33 trillion in December 2019 to $18.3 trillion in July 2020. Over the same period, real GDP fell by 5.1 percent. (a) Assuming that the velocity of money was constant over this period, what should theinflation rate be, based on the quantity equation? Show your work. (b) Why would you not expect inflation to be immediate, following the monetary ex-pansion?
Table 29-6. Reserves Loans O $106,000 O $60,000 O $72,000 Assets O $50,200 Bank of Springfield $19,200 228,000 Refer to Table 29-6. Assume the Fed's reserve requirement is 6 percent and that the Bank of Springfield makes new loans so as to make its new reserve ratio 6 percent. From then on, no bank holds any excess reserves. Assume also that people hold only deposits and no currency. Then by what amount does the economy's money supply increase? Deposits Liabilities $240,000
Please answer fast
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