How will the following affect (increase or decrease) the price level (in the long run)? (a) technological progress that increases real GDP (b) an increase in credit card usage (c) an increase in the usage of cryptocurrencies for transaction purposes (d) a complete abolishment of federal deposit insurance

How will the following affect (increase or decrease) the price level (in the long run)? (a) technological progress that increases real GDP (b) an increase in credit card usage (c) an increase in the usage of cryptocurrencies for transaction purposes (d) a complete abolishment of federal deposit insurance

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The Federal Reserve was created after: a period of very high unemployment. a series of bank runs and bankruptcies. an extended period of economic stagnation. an increase in the inflation rate.
If the U.S. government's budget deficits are increasing aggregate demand, and the economy is producing at a level that is substantially less than potential GDP, then: a) government borrowing is likely to crowd out private investment. b) an inflationary increase in the price level is in real danger. c) the central bank might react with an expansionary monetary policy. d) higher interest rates will crowd out private investment.
Actual GDP in a country is estimated to be 10 percent above potential GDP. Prices are virtually unchanged from one year ago. Unemployment is 3 percent of the civilian work force, much lower than it has been in many years. Which of the following policies would be the most appropriate for improving these economic conditions? decreases in interest rates by the central bank decreases in reserve requirements on deposits at commercial banks to protect depositors reductions in the federal debt decreases in corporate and personal income taxes
M11
Question 20
Actual GDP in a country is estimated to be 10 percent below potential GDP. Prices are virtually unchanged from one year ago. Unemployment is 12 percent of the civilian work force, much higher than it has been in many years. Which of the following policies (whether monetary or fiscal) would be appropriate for improving these economic conditions? (select as many as apply) increases in reserve requirements on deposits at commercial banks to protect depositors decreases in interest rates by the central bank lower corporate and personal income taxes reductions in the federal debt
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…
Suppose the central bank had increased the monetary base to expand money supply by x%. However, the central bank found that the money supply increased at a much lower rate than x%. Which of the following can possibly explain this result? (i) Households chose to put more money in banks and to reduce their holdings of currency. (ii) Banks increased the loans that they made available to borrowers. (iii) Banks increased their holdings of reserves above the reserve requirement. (iv) Banks increased their capital. a. Only (i) and (ii) are correct. b. Only (iii) and (iv) are correct. O C. Only (iii) is correct. O d. Only (iv) is correct.
The discount rate refers to: A) the rate of interest the Fed charges for loans to the government. B) the rate of interest the Fed charges for loans to individuals. C) the rate of interest the Fed charges for loans to banks. D) the lower price large institutions pay for government bonds.
Counter-cyclical fiscal policy and monetary policy is meant to increase long-run trend GDP increase GDP growth during expansions smooth out the volatility in GDP increases the inflation rate
How will the following affect (increase or decrease) the price level (in the long run)? (a) a decrease in credit card usage (b) an increase in the usage of cryptocurrencies for transaction purposes (c) a significant increase in the interest rate on excess reserves (d) technological progress that increases real GDP
This is not a writing assignment, this is a multiple-choice question Which of the below statements about the U.S. Federal Reserve is INCORRECT? Please mark the incorrect statement. Group of answer choices The U.S. Federal Reserve, in its current form, was formed in 1913, immediately before World War I. As in all other countries, the United States has one Central Bank which is a branch of the Federal Government. The U.S. Central Bank, called the Federal Reserve, is a government agency funded by taxpayer dollars. To counter the Great Recession of 2008-2009 and to stop the recession from getting worse, the Federal Reserve lowered short-term interest rates to close to zero percent in its attempt to increase the money supply. The U.S. Federal Reserve controls the money supply and sets the U.S. monetary policy.