These are true or false. Need help with both. A bank run occurs when individuals desire to put more value into their deposits.(I got false on this one because a bank run occurs when influxes of people withdraw their money from a bank, due to the concerns of the institutions financial health). Open market operations is a monetary policy tool that involves buying and selling mortgages with banks. (I got true on this one, because the government uses this to buy securities within the system, which allows the interest rates on loans to decrease and be more accessible).

Q: When the Central Bank increases the money supply, interest rates fall and consumers spend more.…

A: The money supply is the total amount of circulation and deposits in an economy at a period of time.…

Q: Explain how the application of monetary and fiscal policy might be used to simulate a country’s…

A: Macroeconomic policy is concerned with the overall operation of the economy. Macroeconomic policy,…

Q: Lowering the taxes on income can help in expanding the activities in the financial market.  True or…

A: Tax in the compulsory payment made by the individual or institution to the government without…

Q: Which of the following is one of the Five Fundamental Questions? Multiple Choice O O How much should…

A: Economics refers to the social science that focuses on the production, distribution, and consumption…

Q: Monetary policies can work only if private enterprises respond to them in certain way; if they…

A: Monetary policy is the practices and interactions of a central bank which regulates the availability…

Q: oes monetary policy have an advantage over fiscal policy? W

A: Monetary policy refers to the policy of central bank which affects the cost and availability of…

Q: Explain the importance of the concept of monetary neutrality on economic policy making.

A: The neutrality of money theory proposes that changes in the money sock are capable of influencing…

Q: O Define what is meant by the term monetary policy. O Outline what actions the central bank should…

A: A) Monetary policy is the control of the amount of cash accessible in an economy and the channels by…

Q: 1.1 Assume that you are in charge of the central monetary authority in a mythical country. You are…

A: YearQmY19872519882.55.519893.2619903.6719913.37.2199247.719934.28.419944.6919954.89.71996510Thank…

Q: Despite the fact that personal possession of currency is not allowed by U.S. prisons, in reality,…

A: Money is a specific term used to describe the worth of products and services. It serves as the…

Q: Global money can impact monetary policy Group of answer choices Very little because businesses are…

A: Global money, also known as a world currency, supranational currency, or global currency, is a form…

Q: Which of the following is NOT an example of monetary policy       A. Lowering the discount rate…

A: Monetary policy is the policy which leads to change in the monetary component (interest rate) in the…

Q: True or false: Changes in monetary policy can affect output in the long run, but not in the short…

A: Monetary policy is a set of tools used by a country's central bank to encourage long-term economic…

Q: Monetary policy as one of the macroeconomic policies is generally implemented in line with the cycle…

A: The central bank of the country uses monetary policies to maintain balance in the economy.

Q: During & after the Great Recession, the Fed (under chairman Ben Bernanke) did little beyond using…

A: True.

Q: Pretend that a country is on the gold standard and an evil villain succeeds in destroying a…

A: The gold standard is a different form of monetary system in which the currencies as well as the…

Q: what type of fiscal policy or monetary policy that is currently being implemented

A: The fluctuation in the economic activity is tracked by the business cycle. In an economy, the fall…

Q: Which one of the following statements is true? Group of answer choices The total supply of money is…

A: Money supply affects the entire economy. Thus, money supply is controlled by the central bank of…

Q: Monetary Policy Let’s presume that you are the leader of the central bank of the country of Namibia.…

A: The demand side of economic policy is monetary policy, which refers to the measures taken by a…

Q: Countries normally attempt to manage their economy using monetary policy. By managing the money…

A: Concepts: The international flow of money refers to the inflow and outflow of money in an economy…

Q: Why is it important for the central bank of a country to be independent? (i) The central bank needs…

A: Central banks controls the money supply and maintain the inflation rate at desirable level through…

Q: Imagine you're sitting around talking with your relatives during some family R&R. You hear members…

A: Modern Monetary Theory (MMT) is an alternative macroeconomic theory that views currency as a public…

Q: Define the following concepts: Sticky Prices Expansion and contraction Inflation, Deflation and…

A: Sticky prices: it implies that the price remains constant despite the changes in the economy or that…

Q: Need help with both. These are true or false questions.  Monetary policy involves changes to…

A:

Q: Which of the following is considered to be a relatively drastic tool of monetary policy? altering…

A: Discount rate or interest rate would be drastic tool because it would affect the aggregate demand to…

Q: Consider a country that fixes the value of its currency to gold and allows the free flow of capital.…

A: The main way then that the nation might have both a fixed exchange rate and an autonomous money…

Q: Suppose that Karina is running a tattoo parlor with two types of customers. The first type is…

A: Price discrimination is  pricing strategy based on the principle that the seller will charge the…

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: There is monetary equilibrium in the economy. The total currency in the economy is $6 million, of…

A: The total currency in the economy is $6 million,  public holds $4 million. The commercial banks’…

Q: What causes Monetary base and Monetary supply to increase?

A: Monetary Base: The monetary base refers to the sum of all currency that is in circulation and all…