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Describe the difference between
an exogenous and an endogenous
theory about the money supply.
In your view what important
differences between the two
theories exist?
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- 1. In an OLG model with money: Each gen picks 12 banans when young, 4 bananas when old. Central bank prints out 2 units of money, given to gen 0 for free. A. In equilibrium, 1 money = ______ bananas. B. The level of employment is _____ in each period. (how many people are employed each period) C. The unemployment rate in this economy is ______%. what other information do you need? I dont have any other information, this is all that I was given.curve to In the market for reserves, if the Federal Reserve Bank increases the required reserve ratio, this should shift the the O supply; left O supply: right O demand; left O demand; rightla. Why it is necessary to check the location of your target business before the operation? 1b. Explain the potential costs of disequilibrium in the market? 1c. What is the difference between the movement along of the supply and demand curves and their shifts?
- What is money, according to Adam Smith? Is it an economic instrument that creates wealth, or inequality? Describe 1 argument and make explicit reference to an idea from The Wealth of nations?D4How does money of stable value influence the volume oftrade? When the inflation rate is volatile, how is the volumeof trade affected? How will this influence the income levelsof people?
- a) Which of the follwing monetary policy actions can be used to close an inflationary gap?O No change in the money supply to keep interest rates constant.ODecrease the money supply to decrease interest rates,OIncrease the money supply to increase interest rates.O Increase the money supply to decrease interest rates.O Decrease the money supply to increase interest rates. b) Assume the economy is initially at full-employment equilibrium. Suppose the economy slows down and uncertainty increases, reducing consumption and investment expenditures, in the short run, this shock willcause the economy to fall below full enployment. To move the economy to a full-employment equilibrium, the Fed could:O. decrease government spendingO. increase corporate tax ratesO. lower the federal fund rate targetO. increase government spending O. raise interest ratesExplain why monetarypolicymakers can target any inflation ratein the long run butcannot target a levelof aggregate output inthe long runCan you please just draw the 3 Economic models , the 2 blanchard IS-LM-PC and the Anti Blanchard IS-LM-PC, can you do it for each case , please dont generate AI graphs this is the 5th time i have had to upload this question Assume an economy that starts with Y=Yn .Illustrate graphically and explain the impact of a contractionary monetary policy shock (e.g. a fall in the money supply or a rise in the interest rate) on output, inflation, and the distribution between profits and real wages in each of the following three models: Blanchard IS-LM-PC model with exogenous money; the Blanchard IS-LM-PC model with endogenous money; and the Anti-Blanchard IS-LM-PC model with endogenous money where firms have the power to adjust the economy after a shock.
- During the global financial crisis, how was the Fed ableto help offset the sharp increase in financial frictionswithout the option of lowering interest rates further?Did the Fed’s plan work?Pls help with this homework.In 4 separate graphs, show the evolution of MEU, PEU, RACand EAC/$overtime in response to the permanent decrease in the European money supply. Provide abrief economic interpretation for this behavior in each graph.
