Q.1: In the next graph, the trend of"repo/reverse repo ratio" during recentmonths in Turkey is given. Considering thetrend depicted in the figure answer each ofthe following separately:21.81.61.4a. Evaluate the change in monetaryA1.2base and direction of monetary policy forAB interval.10.80.6b. Evaluate the change in monetary base and direction of monetary policy for BC interval.c. Evaluate the change in monetary base and direction of monetary policy for CD interval.MayJuneJulyOctoberFebruaryMarchDecemberJanuaryAugustSepternb.November

The repo rate is a rate at which the central bank loans money to the scheduled banks on a short-term…

Q.1: In the next graph, the trend of "repo/reverse repo ratio" during recent months in Turkey is given. Considering the trend depicted in the figure answer each of the following separately: 2 1.8 1.6 a. Evaluate the change in monetary base and direction of monetary policy for 1.4 1.2 AB interval. 1 b. Evaluate the change in monetary base and direction of monetary policy for BC interval. c. Evaluate the change in monetary base and direction of monetary policy for CD interval. 0.8 0.6 May June July Septemb October November December January February March asnany

Q.1: In the next graph, the trend of "repo/reverse repo ratio" during recent months in Turkey is given. Considering the trend depicted in the figure answer each of the following separately: 2 1.8 1.6 a. Evaluate the change in monetary base and direction of monetary policy for 1.4 1.2 AB interval. 1 b. Evaluate the change in monetary base and direction of monetary policy for BC interval. c. Evaluate the change in monetary base and direction of monetary policy for CD interval. 0.8 0.6 May June July Septemb October November December January February March asnany

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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On the LRAS model, if the Aggregate supply decreases, then the price level will__ and the quantity will O Decrease, Decrease Increase, Decrease O Decrease, Increase Increase, Increase During a recession, we would use while in an Inflationary period, we would use O Expansionary Monetary Policy, Contractionary Monetary Policy Retractionary Monetary Policy, Expansionary Monetary Policy O Contractionary Monetary Policy, Expansionary Monetary Policy O Expansionary Monetary Policy, Retractionary Monetary Policy On the LRAS, Aggregate supply is sloped while Aggregate demand is sloped * Downwards, Upwards O Upwards, Upwards O Downwards, Downwards O Upwards, Downwards As the Interest Rate increases, consumption and investment increase. * False O True O O O O O O
Revisited Fiscal and Monetary Policy The IS Curve represents the equilibrium in the goods market and the LM Curve represents the equilibrium in the money market. The following are the equations for the IS-LM curve: IS relation : Y = C(Y – T) + I(Y, r + x) + G LM relation : r = ?̅ Y=Output, C=Consumption, T=Tax, I=Investment, G=Government Expenditure; r=interest rate, x=risk premium. a. What is unconventional monetary policy? When the central bank should conduct this kind of monetary policy? Give an example of unconventional monetary policy. b. Draw the IS-LM movement of unconventional monetary policy and tell the story behind it.
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Explain the circular-flow model of the economy in terms of resource and monetary flows. Discuss the role of injections and withdrawals within this model. What are the limitations of this model of the economy?
We make use of the general monetary model here, where L is no longer assumed constant, and money demand is inversely related to the nominal interest rate. Recall from that earlier question inflation rate in Korea is = 10% and inflation rate in Japan is = 0%. In addition, assume that the bank deposits in Japan pay 2% interest rate (i¥ = 2%). a. Compute the interest rate paid on South Korean won deposits (iwon). b. Using the definition of the real interest rate, show that the real interest rate in South Korea (rwon) is equal to the real interest rate in Japan (r¥) c. Suppose the Bank of Korea decreases the money growth rate from 15% to 10% and the inflation rate falls proportionately (one for one) with this decrease. If the nominal interest rate in Japan remains unchanged, what happens to the interest rate paid on Korean won deposits? d. Using time series diagrams (impulse graphs), illustrate how this decrease in the money growth rate affects South…
1. What do you understand about national income? How would you like to summarize about approaches for the monetary analysis?
multiple part question Create a graph of equilibrium in the IS-LM model. Show the effect of an expansionary monetary policy. Summarize your results. B. If the central bank’s goal is to maximize output, what interest rate will we expect in equilibrium? C. Starting from the equilibrium described in (B), suppose investors experience a decrease in “animal spirits.” What happens to output? Can the central bank offset this with expansionary monetary policy? D. What could fiscal authorities do to offset the shock to animal spirits described in (C)?
For the next four questions, assume the economy can be described by the following set of equations: C/Ỹ = 0.7 1/Ỹ = 0.1 – 4(R – F) G/Ỹ = 0.2 C+I+G =Y Also assume that i = 0.02 and Y = 10. This is a complete IS model. You will be given the value of R set by monetary policy in each question. For all questions, enter the answer rounded to 1 decimal place. Suppose a demand shock (which may be positive or negative) results in a new consumption function such that C/Y =0.9. Assume the other demand functions for investment and government spending are unaltered, and that monetary policy is neutral so that R=0.02. What is the value of short-run output ÿ in percent? Answer:
Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $360, the price of a pie was $4.50, and the economy produced 800 pies. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money Quantity of Output Nominal GDP (Dollars) Price Level Year Velocity of Money (Dollars) 360 (Dollars) 4.50 (Pies) 800 2019 2020 378 10 800 the change in the money supply was The money supply grew at a rate of reflected from 2019 to 2020. Since pie output did not change from 2019 to 2020 and the velocity of money in changes in the price level. The inflation rate from 2019 to 2020 was
49) Which of the following sequence of events follows an expansionary monetary policy? B) rį =4 = ADL = YĮ. D) ↑ =Į = ADĻ = YĮ. A) ↑ = K = ADĮ = Y7. C) rį = = ADT = Y}.