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- A country’s money supply growth is 3%. The growth rate of real GDP equals 5%. Using a quantitative theory of money, answer the following: 1) what os the growth rate of nominal GDP 2) What is inflation rateIf history repeats itself and we see a decline in the rateof money growth, what might you expect to happen toa. real output?b. the inflation rate?c. interest rates?The government of a country increases the growth rate of the money supply from 5 percent per year to 50 percent per year. a) What happens to prices? b) What happens to nominal interest rate? c) Why might the government be doing this?
- Which of the following would indicate that the dollar amount being analyzed is money? a. M1 money stock of $1.4 trillion at the end of 2010 b. The first quarter of 2002 c. Microsoft profits of $500 billion in 2010 d. Nominal GDP in 2010 of $14.7 trillionIn China discuss how banks,capital and money market work to dynamically allocate money between those who do not yet need to spend their money and those who wish to use more money than they have.a) Suppose growth rate of Real GDP is 6% and the growth rate of velocity is 3%. If Bangladesh Bank wants to have a 5 % inflation rate, what should be the growth rate of money supply according to the predetermined-money-growth-rate-rule?b) If Bangladesh Bank increases money supply at a rate that is higher than the rate you found in part a, what will be the impact of that higher than required money growth?
- When the price of slaves was quoted in cows and brass rods in Nigeria, which function of the money were the cows and rods performing?Most US banks are privately owned, profit-making organizations. Although they provide a service just as many other businesses, banks differ because of their importance in the macroeconomy. Policymakers have debated whether banks should be permitted only do to banking business, or whether banks should be permitted to engage in other lines of business such as selling insurance or buying and selling stocks and bonds. What are the risks for the macroeconomy if a bank fails that do not exist for other businesses? If banks could participate in other lines of business what benefits would there be for consumers? Overall, should banks be allowed to enter other lines of business?a. Suppose growth rate of Real GDP is 6% and the growth rate of velocity is 3%. If Bangladesh Bank wants to have a 5 % inflation rate, what should be the growth rate of money supply according to the predetermined-money-growth-rate-rule? b. Suppose you got 2000 taka note as Eid gift from your uncle. What are the minimum increase and the maximum increase in the money supply that may result? Why they might be different? Assume the required reserve ratio is 10 percent. c From the equation of exchange, how would you explain the impact of rise in money supply to real GDP and price level? Consider velocity and real GDP are constant.
- For a country A, the nominal GDP growth rate is 10 percent and inflation is 4 percent. If the velocity of money remains constant, what is the percent change in real money balances?Explain to Wanda how the monetary system works. In particular, describe the various financial institutions’options she has for raising capital for he business. Be certain to explain the advantages and potential disadvantages of each funding method. How could Wanda approach seeking funding for expansion?In an economy where the central bank implements negative interest rates as a monetary policy tool, what is the most likely short-term impact on consumer savings behavior and bank profitability? A. An increase in consumer savings as people seek to safeguard their money and a rise in bank profitability due to increased lending. B. A decrease in consumer savings as the incentive to save diminishes and a decrease in bank profitability due to lower interest margins. C. No significant change in consumer savings behavior but an improvement in bank profitability due to lower borrowing costs. D. A shift in consumer investment towards riskier assets and challenges in bank profitability due to compressed interest margins. Please don't use chatgpt it is giving wrong answer and please provide valuable answer
