"The South African Reserve Bank (Sarb) lifted the repo rate by 25 basis points on Thursday to 7.25% Three MPC members preferred the announced increase, while two voted for a 50bps increase." In order to increase the repo rate by 25 basis points, a central bank will make use of which of the following policy instruments? OA Public debt management OB. Intervention in foreign exchange markets OC Accommodation policy OD. Open market policy Previous page Quetton 8 Not yet answered Marked out of 100 Tag question Next page

"The South African Reserve Bank (Sarb) lifted the repo rate by 25 basis points on Thursday to 7.25% Three MPC members preferred the announced increase, while two voted for a 50bps increase." In order to increase the repo rate by 25 basis points, a central bank will make use of which of the following policy instruments? OA Public debt management OB. Intervention in foreign exchange markets OC Accommodation policy OD. Open market policy Previous page Quetton 8 Not yet answered Marked out of 100 Tag question Next page

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Imagine that you run the central bank in a large open economy.Your goal is to stabilizeincome, and you adjust the money supply accordingly. Under your policy, what happens tothe money supply, the interest rate, the exchange rate, and the trade balance in response toeach of the following shocks?a. The president raises taxes to reduce the budget deficit.b. The president restricts the import of Japanese cars.
1. Explain by using a curve the effect of a decrease in the minimum reserve requirement on the balance of the money market 2. Explain by using a curve the effect of an increase in people's real wages on the labor market. 3. Explain with examples of the application of what is meant by the expansionary fiscal policy used by the government to control the country's economy
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To explain the determinants of exchange rates in the short run, analysis can be used....a. The law of one priceb. Asset demand theoryc. Quantity theory of moneyd. Liquidity preference theory
Use the table below to complete the following exercise. Plot the price and quantity data. Indicate the price elasticity value at each price. What happens to the elasticity value as you move down the demand curve? Price $ % Change in Price Quantity Demanded % Change in Quantity 5 100 10 100 80 220 15 66 60 225 20 33 40 233 25 25 20 250 30 30 0 2100 b. Below the demand curve plotted in (a), plot the total-revenue curve, measuring total revenue onthe vertical axis and quantity on the horizontal axis C. Using the data in (b), what would a 10 percent increase in the price of movie tickets mean for the revenue of a movie theatre if the price elasticity of demand was, in turn, -0.1, -0.5, -1.0 and 5.0?
Pls select correct option and explain in 4-5 sentences ok.
According to the Taylor rule, the Federal Reserve should lower the federal funds rate when the apply.) A exchange rate rises. B. Fed's inflation rate target rises. c. inflation rate falls. D. Fed's long-run target for the federal funds rate falls. DE output gap falls. (Check all that
QUESTION 3 How are purchases or sales of foreign currency by a central bank are related to monetary policy? OA. a purchase of foreign currency will increase money supply B. a purchase of foreign currency will reduce the nominal exchange rate C. a purchase of foreign currency will reduce money supply O D. a purchase of foreign currency will increase the nominal exchange rate
Manuben
Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O appreciate; fall O depreciate; rise O depreciate; fall
Explanation it very good and clear. Not copy paste from anywhere.and give concept throughout
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