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if the fed raise the reserve requirment on deposit from 15% to 20%, what would happen to the money supply? a. it would increase b. it would remain unchanged c, it depends on the value of interest rates d, it would decrease

ents Correct Answer You Answered Suppose the Fed conducts monetary policy by targeting nominal expenditure growth to 8%. If Y = 3, and = 3. What policy should the Fed take? Contractionary policy, increasing the money supply by selling bonds, so interest rates decrease The Fed should do Nothing Expansionary policy, increasing the money supply by buying bonds. so interest rates decrease Contractionary policy, decreasing the money supply by selling bonds, so interest rates increase 4 None of the above are correct Q Search Contractionary policy, decreasing the money supply by selling be 13

If the Fed decides to leave the federal funds rate target range unchanged, we would expect _______.     A. deflation to occur and the unemployment rate to increase   B. the recessionary gap to increase   C. potential GDP to increase and the full-employment quantity of labor to increase   D. inflation to increase and the unemployment rate to decrease

Explain all option plz......you will not explain all option then I will give you down upvote...

Monetary policy and fiscal policy scavenger hu nt In a 25 year perio d, the CPIhas shown that the cost of a basket of go ods has ri sen by 150%. What action can the Federal Reservetake on reserve requirements to help reverse this trend? Federal Reserve polici es haveled to an increasein the real GDP. What action did the Fed probably take on interest paid on requi red and excess reserves to achieve this? The unemploymentrate has risen and the pricelevel and real GDP have fallen. What are four po ssible actio ns the Federal Reservehas taken to cause thi s?

If the Fed desired to reduce the federal funds rate, OA. it would conduct an open market purchase, reducing reserve dema O B. it would conduct an open market sale, reducing reserve supply. OC. it would conduct an open market purchase, increasing reserve sup OD. it would conduct an open market sale, increasing reserve demand..

If the Fed raises RRR from 10 % to 20%, the simple money multiplier:   A. Will rise from 5 to 10   B. Will fall from 10 to 5   C. Will be unaffected   D. Cannot be calculated

Question 2 is attatched. Asking for an answer for question 3

Assume that the reserve requirement is 20 percent.Also assume that banks do not hold excess reservesand that the public does not hold any cash. The Feddecides that it wants to expand the money supply by$40 million.a. If the Fed is using open-market operations, will itbuy or sell bonds?b. What quantity of bonds does the Fed need tobuy or sell to accomplish the goal? Explain yourreasoning.

Typed plz  My feedback depends on  how good  quality  solution will I get

Imagine that the federal funds rate was above the level the Federal Reserve had targeted. To move the rate back towards itť's target the Federal Reserve could O sell bonds. This selling would reduce the money supply. O buy bonds. This buying would increase the money supply. O sell bonds. This selling would increase the money supply O buy bonds. This buying would reduce the money supply.

please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly

if the reserve requirement was so low that no bank felt it was a constraint then a. the arithmetic that produced the monetary base multiplier would be invalidated by the uncertainty surrounding the feds balance sheet.  b. the monetary base multiplier would have to be infinity and all monetary control would be destroyed c. the relationship between currency and demand deposits would be too uncertain to allow an accurate calculation of the monetary base multiplier  d. the relationship between reserves and deposits would be s uncertain that the ability of the central bank to control the money supply through the monetary base would be severely hampered.