n 2008, Japan's economy suffered as world economies slowed. If authorities in Japan followed the monetarist viewpoint, to bring the economy back to full employment. A) taxes would be decreased and the money supply should be increased B) nothing should be done C) aggregate supply would shift leftward D) the money supply would be kept growing at a steady pace

11. Since 1990, money supply in the Japanese economy has doubled. Over the same period,nominal GDP in Japan has stayed almost constant. According to the Quantity Theory of Money,this suggests thata) the level of real GDP must have decreased.b) the level of real GDP must have increased.c) the velocity of money must have decreased.d) none of the above   13. According to the trilemma, which of the following is a potential cost of adopting a flexibleexchange rate regime?a) A country may have to restrict the size of capital flows.b) A country may su↵er from a volatile exchange rate.c) A country loses the ability to conduct independent monetary policy.d) None of the above. 14. In an open economy, if the level of net exports rises, it must be the case thata) there is an increase in saving.b) there is an increase in investment.c) the value of saving less investment must fall.d) none of the above

8) Assume that the economy is initially operating at the natural level of output. A one-time 4% reduction in the nominal money supply will cause: A) a 4% increase in the price level in the medium run. B) a 4% reduction in the price level in the medium run. C) a 4% increase in the real money supply in the medium run. D) a 4% increase in the interest rate (i) in the medium run. E) a 4% reduction in investment in the medium run.

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7)According to the Taylor rule, if inflation has risen by 4 percentage points above its target of 2 percent, the Fed should Group of answer choices   grow the money supply at a rate of 6 percent per year.   raise the real federal funds rate by 2 percentage points.   raise the real federal funds rate by 3 percentage points.   raise the real federal funds rate by 6 percentage points.

The Quantity Theory of Money (QTM) states that ______. Note: the blank represents an entire phrase, not one word. (a) In the long run, an increase in the money supply will generate an equivalent increase in the velocity of money. (b) In the long run, an increase in the money supply will generate an equivalent increase in real GDP. (c) In the long run, an increase in the velocity of money will generate an equivalent increase in the price level. (d) In the long run, an increase in the money supply will generate an equivalent increase in the price level.

23. What is an implication of the neutrality of money in the long run?     The economy's level of potential output will adjust to accommodate any change in the money supply.     Changes to the money supply have no effect on either the price level or real GDP.     In response to any change in the money supply, the demand for money will adjust to cancel out its effects on all macroeconomic variables.     Changes to the money supply never have any effect on real GDP.     In response to any change in the money supply, the economy's adjustment process will bring Y back to Y*, which is unaffected by the change in the money supply.

The central bank of Barbados decides to pursue anexpansionary monetary policy. (i) Identify one possible action they could take. (ii) Carefully explain, in as much detail as possible, how the chosen action will impact the money market. (iii) Illustrate the overall impact of the chosen action on the money market.

In countries with extremely high inflation, increases in the money supply:     A) are quickly translated into changes in the inflation rate.   B) do not affect the price level.   C) will decrease real GDP.   D) will increase real GDP.

Question 2: Suppose the money supply is $50 in an economy where the nominal GDP is $1000, and the real GDP is $500. a) Can you calculate the price level? b) Can you calculate the money velocity? c) Now suppose output increases by 10 percent and the velocity is constant. Suppose Fed wants to keep prices constant through monetary policy. What will happen to the nominal GDP and price level? d) Suppose Fed targets 5 percent inflation. What money supply should the Fed set to achieve that?