a. government spending should increase or decrease? b. taxes should increase or decrease? c. discount rates and federal funds should increase or decrease?
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After a speculative boom, the stock market crashes, and as with previous crashes, causes the wealth of millions to fall. An economic slowdown follows.
a. government spending should increase or decrease?
b. taxes should increase or decrease?
c. discount rates and federal funds should increase or decrease?
d. reserve requirement increase or decrease?
e. open market operations increase or decrease?
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- The unemployment rate has fallen below the natural rate of unemployment, and a "tight" labor market is driving wages and prices up. a.Government spending should: increase or decrease? b. taxes should increase or decrease? c.Discount Rate and Federal Funds Rate should: increase or decrease? d. Reserve requirement should increase or decrease? e. open market operation should increase or decrease?It can be argued that banks are a very useful part of creating economic activity. It can also be argued that they are inherently unstable. Explain these two perspectives. don't provide pl' Stricter capital and liquidity rules could lead to huge funding gaps , reducing lending , which could kill off economic recovery . Therefore , it is only right that amid growing concerns of another economic crash , financial institutions should be encouraged to lend out money as cheaply as possible to businesses and households . ' How far do you agree with the above statement ? Explain .
- Banks follow the Fed’s lead to influence the economy and prevent a financial downturn? True or false1.The Federal Reserve can influence financial crises because it: A)determines tax rates. B)determines government spending. C)conducts monetary policy. D)is responsive to the people who elected its members to office. 2.Janet Yellen is: A)chair of the Board of Governors of the Federal Reserve System. B)an AIG executive who received large bonuses. C)a Supreme Court justice who ruled that budget deficits are unconstitutional. D)a financial adviser on CNBC. 3.In 2014, Ben Bernanke was succeeded as chair of the Board of Governors of the Federal Reserve by: A)Janet Yellen. B)Paul Ryan. C)Joe Biden. D)Nancy Pelosi. 4.The chair of the Board of Governors during the 2008 financial crisis was: A)Barack Obama. B)Ben Bernanke. C)J. P. Morgan. D)John McCain. 5.Generally, the more liquid an asset is, the: A)lower its purchasing power. B)lower its rate of return. C)higher its capacity to store value over time. D)higher its rate of…What is the meaning of bail-in and bail-out? What are the pros and cons of using bail-in to resolve a bank failure? Identify and discuss an example of when bail-in was used in a bank resolution.
- Considering all the bailout money the public has been made responsible for, is the existence of banks and non-bank financial institutions worth it, or would it have been cheaper to the public to simply keep all our money under our mattresses?Suppose that the Federal reserve is concerned about the effects of rising stock prices on the economy. What could it do? a. buy bond to raise the interest rate b. buy bonds to lower the interest rate INCORRECT c. sell bonds to raise the interest rate INCORRECT d. sell bonds to lower the interest rate I thought the answer was B. BUT My results tell me option B. is incorrect.... Another chegg question shows option C. as incorrect as well... Please help?For the Movie “Banking on Bitcoin” answer the following questions. In details, the review report should include (not limited to) the following parts: A) What is the market situation or macroeconomic environment described by the movie? How do investors, business or regulators behave in the movie? What are the specific financial products or instruments mentioned by the movie? B) What are the reasons of financial crises, market crashes or massive loss in transactions?
- Please answer the both questions I will give you Upvote 1) Why is a financial crisis likely to lead to a contraction in economic activity? a. None of the above are correct. b. Those that borrow funds to finance productive investment opportunities will have a greater opportunity to obtain financing. c. A disruption in the financial system diminishes the flow of funds from savers to borrowers. d. Disruptions in the financial system decreases asymmetric information, thereby decreasing the associated problems of adverse selection and moral hazard. 2) Suppose the Federal Reserve is selling $10 million of bonds to First National Bank. What is the impact on reserves and the monetary base? a. Reserves fall by $4 million and the Monetary Base falls by $4 million. b. Reserves rise by $2 million and the Monetary Base rises by $2 million. c. Reserves fall by $2 million and the Monetary Base rises by $2 million. d. Reserves fall by $2 million and the Monetary Base falls by $2 million.Suppose the bank expects interest rates to rise which would impact the value of theirgovernment bonds. Suppose the price of the 10 year Treasury bonds is expected tochange by 6%. Would this cause a problem for the bank? Why or why not?In the Great Depression, countries with the worst contractions suffered ________ _____ Expansionary policies adopted to support elected officials in the next election can create a _________ _______ _____ In addition to bond prices, changes in interest rates affect what other asset prices? _______ _____ and ______
