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: 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: . 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: 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…

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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: 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: 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.…

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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: 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…

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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: 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…

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

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

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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%?…

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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: 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…