Changes in which of the following will cause a change in exchange​ rates?   A. consumer preferences   B. real interest rates   C. perceptions of economic and political stability   D. all of the above

Q: In a new nation that wants to follow the Friedman Rule, the real interest rate is 5% per year, real…

A:

Q: How to reduce / maintain the inflation rate of the country at its best level ( in 6 way with example…

A: Six ways to reduce and keep the inflation rate of a country within the desired level are discussed…

Q: Robust economic growth shifts the transactions demand for money. Consequently, growth will tend to…

A: Economic growth exhibits that economic transections are more frequent in the economy. Thus, an…

Q: Does the monetary policy have an impact on long-term economic growth or short-term economic?

A: Monetary policy includes the control of the money supply as a rule to keep costs steady and smooth…

Q: n economy, the money supply growth rate is 5.0%, the equilibrium real interest rate is 1.5%, the…

A: The answer is given below

Q: Show the effects of a decrease in current period productivity in the Keynesian model? Why does the…

A: Keynesian Theory of Employment and Output: Keynesian Theory of employment and output determination…

Q: Which of the following would indicate that the dollar amount being analyzed is money?   a. M1 money…

A: Money refers to anything that accepted for transaction of goods and services.

Q: Monetary policy as one of the macroeconomic policies is generally implemented in line with the cycle…

A: The central bank of the country uses monetary policies to maintain balance in the economy.

Q: Which of the following could be definition of price stability? A)Low and Stable Inflation B )Low and…

A: Price stability refers to the constant price level or expected change in the price level over a…

Q: Draw a demand for money curve. Label it MDo- Draw a demand for money curve that shows the effect of…

A: Demand curve for Money is Downward Sloping because it shows a negative relationship between interest…

Q: Q. Differentiate the Expected real interest rate to Realized real interest rates? Give examples.

A: The realized interest rate is given by subtracting the nominal rate from the current inflation rate.…

Q: The data below are from the economies of Ishgandar and Nonburmia. Ishgandar         Nonburmia…

A: GDP is the value of goods and services produced in the economy within a given period of time.

Q: Explain how higher interest rate appreciates the value of the currency when in fact it increases the…

A: Interest rates, inflation, and exchange rates are three fundamental macroeconomic variables for a…

Q: In general, the more the government borrows, interest rates should [rise, fall, remain unchanged].…

A: The government borrows the money to fill the gap of Fiscal Deficit. A fiscal Deficit is a difference…

Q: Other things the same, as the price level rises, the real value of a dollar   rises, and interest…

A: Macroeconomics discusses economic behavior in an aggregate manner. It explains income, output,…

Q: Using the macroeconomic environment where banks sources its inputs and to which it sells its…

A: The term "macro-environment" refers to how the macroeconomic environment in which a company or…

Q: Support your answer with calculations please. Suppose an economy in which the public holds 10% of…

A: We know that the monetary base is the sum of currency C and reserve R MB=C+R             .... (1)…

Q: Explain some policies to reduce the high rate of inflation.

A: Q. Explain some policies to reduce the high rate of inflation.   Definition: Inflation is an…

Q: If a recession persists due to nominal wage and price stickiness (i.e., slow adjustment of nominal…

A: Answer- Need to find- If a recession persists due to nominal wage and price stickiness (i.e., slow…

Q: he interest-rate effect suggests that:   A. an increase in the price level will increase interest…

A: We have to found the interest rate effects .

Q: Prior to December 15, 2016 the largest unit of currency in Venezuela was the 100 bolivar. With…

A: As when the notes in circulation became useless, as in Venezuela, the 100 bolivar notes became…

Q: Assume GDP is currently $12,800 billion per year and the quantity of money is $512 billion.    What…

A: Given that:- GDP                                       = $ 12800 billion per year Quantity of money…

Q: 4. Velocity and the quantity equation Consider a simple economy that produces only pies. The…

A: Quantity theory of money says MV = PY  M= money V= Velocity  P= price  Y= real GDP

Q: If the central bank’s goal is to maximize output, what interest rate will we expect in equilibrium?

A: The actions undertaken by the monetary authority of an economy, usually the central bank, to promote…

Q: What are the money markets and what are the capital markets? How do they differ? What are their…

A: Money market: 1)Money market is a short-term market where instruements like commercial papers,…

Q: Assume that the United States economy is currently in a recession in a short-run equilibrium. When…

A: If the economy is in short run recession, that means that the economy is operating with less than…

Q: In the economy, if the Central Bank rediscount rate, in this case, equality in the economy How will…

A: As central bank of any economy rediscounts rate the income of the economy changes effecting the…

Q: The accompanying graph represents the market for loanable funds in the hypothetical country of…

A:

Q: 18. Which of the following policies is not classed as a stabilization policy? a) A policy aimed at…

A: Since you have posted multiple questions, we are answering the first one for you. If you want a…

Q: I. Fill in the table below and answer the questions that relate to the data in the table. Nominal…

A: A nominal interest rate is the interest rate before inflation is factored in. Nominal can also refer…

Q: the economy is in recession and government increases money supply do you think it will affect…

A: If the economy is in recession, it means that there are shortage of funds in the market.

Q: Discuss how the following macroeconomic factors influence performance of loans.   low economic…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Assume GDP is currently $11,700 billion per year and the quantity of money is $650 billion. What is…

A: The quantity theory of money holds that the nominal GDP of an economy equals the amount of money in…

Q: 1. Currently the prime interest rate, which is the interest rate given to customers with the best…

A: a. Given  Nominal Interest Rate = 3.25%  Inflation Rate = 1.3% Real Interest Rate = Nominal Interest…

Q: Bankers make loans in the Nominal Interest Rate, so why do bankers care so much about the Real…

A: We know,  Nominal interest rate = Real interest rate - inflation rate

Q: In an economy, the money supply growth rate is 5.0%, the  equilibrium real interest rate is 1.5%,…

A: Taylor rule: It refers to the rate that is used by the federal reserve to set the interest rate.…

Q: Robust economic growth shifts the transactions demand for money. Consequently, growth will tend to…

A: Economic growth is defined as increasing a country's actual Gross Domestic Product (GDP). This aids…

Q: In which of the following situations would you prefer to be the lender? 1) Expected inflation rate…

A: please find the answer below.

Q: Other things the same, as the price level rises, the real value of a dollar Answer rises, and…

A: The value of a currency both domestically (purchasing power of money) and internationally (Exchange…

Q: Which of the following is an appropriate monetary policy to combat a negative GDP gap?   a. raise…

A: An expansionary monetary policy increases money supply in the economy while a contractionary…