If the Federal Reserve decides to sell bonds, what effect with it have?     It will cause the money supply to decrease and inflation to fall It will cause the money supply to increase and employment to rise It will increase the average citizen’s tax rate We will enter into a deep economic depression

Q: What is the difference between monetary policy and fiscal policy ? Explain

A: Monetary policy is regulated by the central bank of country,whereas fiscal policy is regulated by…

Q: In the graph you've just made, what is the unemployment rate and the inflation rate if the Fed…

A: Phillips curve shows the relationship between the inflation rate and the unemployment rate.  The…

Q: Briefly explain the policy trilemma of the Central Banks. Give examples of how different countries…

A: Open Economy: When one nation trades with other countries through various means, it's called an open…

Q: What is demand pull and cost push inflation in economics?

A: Demand pull inflation in simple words we can say that it is the inflation that generally describe…

Q: Which two words were combined by the press to form the term "Reaganomics?" (You must select both…

A: Answer 12: Reaganomics is a word derived from two words "Reagan" (former US president) and…

Q: . deflation despite increases in money supply. Take an example 2. Moderate inflation in a good…

A: 1. In the case of liquidity trap the LM curve is horizontal and in this scenario any change in money…

Q: Part III: Congress and the President also notice this slowdown in the economy and decides to take…

A: Here, it is given that Congress and the President notice a slowdown in the economy, which implies…

Q: Which should central banks focus on more, unemployment or inflation? Why? Please cite sources to…

A: A increase in the cost of goods and services throughout the economy is referred to as inflation. A…

Q: In the graph to the right, suppose the economy is initially at point A. The movement of the economy…

A: Your issue is related to macroeconomics, more specifically the impact of fiscal policy on an…

Q: 67. During the financial crisis of 2008, the Federal Reserve took extreme policy measures. Which of…

A: The best characterization of the Federal Reserve's policy during the financial crisis of 2008 is:b.…

Q: The Federal Reserve determines that the equilibrium level of output is below full employment and the…

A: The Federal reserve is the central bank of United States. The central bank regulates the activity of…

Q: Why would a Monetarist advocate a balanced budget amendment to the Constitution?

A: The monetarist school of economic thought is an important one amongst the different schools of…

Q: Fill in the Blanks Type your answers in all of the blanks and submit You read the following headline…

A: Since we only solve upto 3 subparts, we will answer (a) to (c) only. Please resubmit the other part…

Q: The following excerpt is taken from the Ministry of Finance: Statement on the economic effects and…

A: We are authorized to answer three subparts at a time, since you have not mentioned which part you…

Q: Economists at which of the following government offices help formulate spending plans and regulatory…

A: The question is asking about the government offices where economists work to help formulate spending…

Q: When the economy is in recession and the Fed wants to do expansionary policy, explain what all 4…

A: In the United States, Fed is the central bank who performed Monetary policies to deal with business…

Q: You read the following headline in the newspaper: "Lower tax rates have led to an increase in…

A: Monetary policy refers to central bank actions aimed at influencing the amount of money and credit…

Q: What effects does the Federal Reserve have on the economy? Select the three correct answers.…

A: The Federal reserve refers to the central bank of United Nations that performs all the functions of…

Q: What do we mean by the Federal Reserve’s “targeted” inflation and unemployment rates?

A: Targeted inflation and unemployment rate are monetary phenomenon which are handled by the Federal…

Q: the government of a country increases the growth rate of the money supply from 5 percent per year to…

A: The quantity theory of money states that there is a equilibrium between the money market and good…

Q: What's wrong with this way of thinking? "When the government runs a budget deficit, it simply pays…

A: Assume that the government is running a budget deficit in the economy. It means the government…

Q: The Fed announced in September 2013 that it would postpone winding down its monetary stimulus until…

A: The Federal Reserve (often referred to as the Fed) is the central banking system of the United…

Q: “The Bank of Zambia’s Monetary Policy Committee has kept the monetary policy rate unchanged for over…

A: The Bank of Zambia implements monetary policy in order to control the economy.

Q: Most economists agree that individual consumers and business cannot pull the economy out of a severe…

A: AT some extent this statement is true because economy is big where larger numbers of buyers and…

Q: If the central banks buys government bonds from the financial system, how does that affect the…

A: The monetary policy is the policy of the central bank regarding the money supply and interest rate…

Q: A news headline reads, "Time for change: let free market forces determine the money supply." Which…

A: The govt of an economy takes up several policies to keep the GDP stable in different phases of the…

Q: the economy has entered a recession. what are two fiscal and two monetary policy actions that could…

A: Monetary policy is a policy tool implemented by the central bank in order to control the overall…

Q: List and explain the 3 Fiscal Policy tools that reduce inflation (Decrease government spending, Tax…

A: Fiscal Policy tools that reduce inflation are:Decrease in government spending:Government spending…

Q: Central Banks around the world started doing Quantitative Easing because they had reached the zero…

A: Quantitative easing is a monetary policy tool. This tool is used by the central bank when the…

Q: When the Fed controls the rate of growth of the money supply to foster macroeconomic stability, this…

A: The United States of America's central bank is referred to as FED or the Federal Reserve System. The…

Q: Explain the difference between fiscal policy and monetary policy. What are some of the reasons these…

A: Macroeconomic policy plans to give a stable economic environment that is helpful for encouraging…

Q: Part IV: The Results As the money supply (increases/decreases), businesses will get (more/less)…

A: The economies around the world tend to work upon the basis of the operations of the entities, such…

Q: Is it possible that money supply can be more than the money demand (this means that we can have too…

A: The money demand curve shows the inverse relationship between the interest rate and the quantity of…

Q: When the Federal Reserve buys government securities from a bank, the money supply ________ and…

A: Purchasing bonds or securities from banks by the federal reserve would increase the money supply in…

Q: According to Monetarists, what should the government do if unemployment is 4% and inflation is 12%?…

A: For monetarists, the best thing about the economy is to look at the supply chain and allow the…

Q: Question 8 Which of the following are true about fiscal and monetary policy? There may be more than…

A: Fiscal policy and monetary policy are tools that enable government & central bank to manage the…

Q: Congress raises taxes and the Fed reduces money supply, then in the short run, the two  policies…

A: *ANSWER:-  * The OPTION A (lower-income but we don't know if the interest rate will rise or not) is…

Q: Why do we care about price stability ? Group of answer choices   All of the options. It is one of…

A: Price Stability : Price Stability can be defined as that level of prices in the economy when the…

Q: Within the Keynesian system explain the following: (a) the relationship between the effectiveness of…

A: The simple Keynesian model assumes that in the short run the prices of the goods are constant and…

Q: Read the event The Federal Reserve raises reserve requirements. What would likely result from this…

A: When the federal bank increases the reserve requirements, then it leads to reduce the banks capacity…

Q: Read the following quote and explain in complete sentences whether it discusses fiscal policy,…

A: Fiscal Policy is the policy measure through which government manages the spending and taxation for…

Q: The graph shows the demand for money curve. Draw a point to show the interest rate and quantity of…

A: The desire for the consumer to hold money for a specific purpose like investment is considered to be…