EBK MACROECONOMICS
10th Edition
ISBN: 9780134896571
Author: CROUSHORE
Publisher: VST
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Chapter 14, Problem 4AP
To determine
Reasons for existence of policies against negotiating with hostage taking terrorists.
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- What does institutionalist say about money neutrality in economics?arrow_forwardI'm currently taking Macroeconomic course and I wanna ask what is the menu costs and Is it somehow relate with the assumption of monetary neutrality? Thank youarrow_forwardwhat were Lionel Robbin's two examples of monetary economics that were inappropriate when he discussed the relationship between theory and ‘reality’?arrow_forward
- There was a temporary increase in the price of oil. Why does an increase in price of oil pose a dilemma for the monetary authority (Fed)?arrow_forwardhow important is the monetary policy in this time of pandemic? cite example.arrow_forwardThese 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).arrow_forward
- Need help with both. These are true or false questions. Monetary policy involves changes to interest rates and credit conditions, affecting the amount of borrowing and spending in an economy(I got true on this one, but I am not 100% on that choice). Open market operations is a monetary policy tool that involves buying and selling mortgages with banks(I got true on this one).arrow_forwardWhat Is the term Switching Policy?arrow_forwardDefine the term Switching Policy?arrow_forward
- How are monetary and fiscal government policies being affected by this corona virus pandemic ? And give examplesarrow_forwardMost legal systems assume that it is better not to incarcerate a guilty individual than to incarcerate an innocent person (i.e., if you are making a mistake, at least choose the least bad one). As central banks can potentially make a mistake when bursting asset-price bubbles, which of the following support the statement: "it is worse to burst a bubble when it was not necessary then not bursting a bubble when it was needed to." a) because central banks have many policy tools to counteract the effect of a price bubble burst, it is usually considered wiser to leave bubbles alone and eventually act if needed. b) The worst mistake would be to burst a bubble when it was not necessary because the central bank may impose harm to the economy when it was not necessary. c) Most central banks are quite conservative with respect to taking actions against asset-price bubbles since they cannot guarantee a price bubble has occurred. d) All of the above.arrow_forwardAs early as the year 1000 CE, nigeria used silver and other metal coins as currency. This is an example of bartercommodity/ moneyrepresentative (commodity-backed)/ moneyfiat money. In 1695, a private bank was granted the right to issue notes that were convertible to silver. This is an example of bartercommodity/ moneyrepresentative (commodity-backed)/ moneyfiat money. After the collapse of this system, a few new systems were implemented, most of which also adopted the silver standard. In 1873, the nigerian currency was introduced, and it was directly convertible to gold. This is an example of bartercommodity/ moneyrepresentative (commodity-backed)/ moneyfiat money. . For the next 100 years, the nigerian currency fell off and on the gold standard until it finally abandoned the gold standard for good in 1971. The nigerian currencyremained pegged to various other currencies until 1992, when it was allowed to float. Today, the nigerian currency follows the price of oil pretty…arrow_forward
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