44. According to the Monetarists, excessive government spending, whether financed by borrowing or taxing, wil result in less productive capital in the future. O True O False

Q: Why is it so difficult to "fine-tune" the American economy using discretionary macroeconomic policy?…

A: In macroeconomics, the discretionary policy is described as an economic policy that is decided by…

Q: The emphasis on the greater incentives to produce, created by lower tax rates, has come to be known…

A: Tax rate influence the productivity of labor as a change in the tax rates changes the input…

Q: increase real GDP in the short run, but not the long run.

A: Explanation: Now the Economy starts from the semipermanent equilibrium(full employment equilibrium).…

Q: a) According to Monetarism, when does an increase in money supply change both Real GDP and price…

A: a) A contractionary monetary policy reduces an economy's money supply. A reduction in the money…

Q: Suppose that the equilibrium real federal funds rate is 5 percent and the target.rate of inflation…

A: Here the question is all about the federal fund's target rate. In this, there will be two steps to…

Q: Assume that the reserve requirement is 5 percent. All other things beingequal, will the money supply…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Kindly help me to solve below homework question : Let say after implementation of monetarty policy,…

A: There are two types of policies that government use to influence money supply in the economy:…

Q: (Policy Lags) What lag in discretionary policy is described in each of the following statements? Why…

A: Time lags refer to the time delay, that is, the time gap between the execution of the policy and its…

Q: Which is of the following is not a belief of monetarists? a.In the long-run, inflation is always a…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: If the government is running a fiscal deficit, it can only finance it through monetization. Select…

A: please find the answer below.

Q: On which of the following do monetarists and Keynesians disagree? A. Deflation causes unemployment…

A: Aggregate supply curve in Monetarists model is vertical straight line at the full employment…

Q: the Federal Reserve attempts to grow the money supply in a recession. How does such a stimulus…

A: It's commen policy that central bank increase money supply in an economy during recession period.

Q: 3. Which of the following is a reason for inflation from a Neoclassical/Monetarist point of view? a.…

A: Answer is given below

Q: a. Which graph below depicts the Keynesian view of the money market? Which is the monetarist view? A

A: a. Keynesian view is that money demand is elastic. Graph A Monetarist view is that money demand is…

Q: ii) Monetary policy in a liquidity trap. Suppose the money demand is Md = $Y (0.25-i) given by: as…

A: The central bank of a country employs a number of instruments known as monetary policy to control…

Q: True or False 1)Monetarists argue that the Treasury's conduct of fiscal policy is the most…

A: In an economy, economists using different approaches beleive in different school fo economics…

Q: The Monetarists believe that a monetary restraint can actually lower interest rates. How do they…

A: Monetary policy are implemented by the government or central bank to manage the money supply in the…

Q: According to Monetarism, when does an increase in money supply change both Real GDP and price level?…

A: This will be explained through a graph below:

Q: a) Explain the lender of last resort (LOLR) function of central banks. Provide some examples of the…

A: One of the most significant and essential functions of a central bank is to manage the country or…

Q: What is the current federal fund rate using Taylor Rule. The inflation rate is 5%, target inflation…

A: Taylor rule: R = r* + π + 0.5*(π - π*) + 0.5*(Output gap) where, R = nominal federal funds rate  r*…

Q: State and explain the basic equation of monetarism. What is the major cause of macroeconomic…

A: Monetarism: - Monetarism is the school of economic thought according to which the economic…

Q: Explain the difference between the Keynesian and the monetarist views on how an increase in the…

A: Keynesian economics emphasizes fiscal policy to control the business cycles in the economy. Keynes…

Q: According to Monetarists, the price level is likely to remain stable over time if the money supply…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: Money demand equation for a country is given by the equation (MP)d=e−λ(πe+r)+αY where πe is expected…

A: The money demand curve shows the inverse relationship between money demand and interest rate. It…

Q: Why might banks be reluctant to lend money if a country has a history of inflation rising…

A: As inflation rates in the economy increase, the value of money decreases. At this point in time,…

Q: The President is getting ready for a press conference, and needs quick advice on "closing the…

A: The fiscal policy is the policy of the government in the economy to control the spending levels of…

Q: 10. Which of the two curves would Keynesians believe is more likely to be the case? Which is more in…

A: Keynesian economists and monetarists have different opinions about the demand for money's…

Q: The unemployment rate has fallen below the natural rate of unemployment, and a "tight" labor market…

A: It is always good to have a minimum amount of unemployment. So natural rate of unemployment is good…

Q: According to Monetarism, when does an increase in money supply change only price level and not Real…

A: Monetarism is an economic and financial principle that claims that by regulating the level of rise…

Q: All other things being equal, by how much will nominal GDP expand if the central bank increases the…

A: As per our Honor code, we are allowed to attempt only first three parts of the question. If you want…

Q: Which of these is an alternative to monetar policy and aims to reduce inflation? a) reduce the…

A: Monetary policy refers to a set of tools used by a country's central bank to achieve its goals of…

Q: Do Monetarists and Keynesians believe that inflation is always and everywhere a monetary phenomenon?…

A: Monetarists view: Monetarists argue that if the Money Supply rises faster than the rate of growth of…

Q: “The Fed can perfectly control the amount of the monetary base, but has less control over the…

A: Monetary base is a measure of money supply that includes only notes in circulation,the most liquid…

Q: In the above figure, suppose that the economy has moved from point Dto point B.According to the…

A: If the economy moves from point D to B, AD1 shifts rightward to AD2.

Q: The monetarist emphasis the inherent stability of the country in the long-run. They also further…

A: The monetarist hypothesis is an economic theory that claims that variations in money supply are the…

Q: Within the aggregate demand-aggregate supply framework, monetarists argue that a change in aggregate…

A: Monetarist believes that the money supply is the main factor to stimulate the economy.  A change in…

Q: Maney Market し P. MALRO Ew AS ADIAS 5. When the Fed decreases the discount rate, there will be some…

A: The equilibrium interest rate in an economy is determined in the money market by the demand and…

Q: Which of the following statements is true?a. Keynesians advocate increasing the moneysupply during…

A: Keynesian economist critized the classical economy during the great depression of 1930's and argued…

Q: Economics Which school(s) argue that changes in the money supply will have no effect on output? A.…

A: The school of thought that argues that the changes in the money supply will have no effect on the…