In a monetary system with limited reserves using a money market graph and explain how increasing the discount rate changes a. The money supply b. Interest rates c. AD
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In a monetary system with limited reserves using a
a. The money supply
b. Interest rates
c. AD
d. Price Level
e. Output
f.
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- All other things being equal, by how much will nominal GDP expand if the central bank Increases the money supply by 100 billion, and the velocity of money is 3? (Use this information as necessary to answer the following 4 questions.)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 rateThe long-run effects of monetary policy. Suppose the central bank of the economy increases the money supply. 1. The long-run effect of the central bank's policy is a decrease? an increase? no change? in the inflation rate, a decrease? an increase? no change? in the unemployment rate, and a decrease? an increase? no change? in real GDP.
- (a) The Federal Reserve Bank of the United States (i.e., the Fed) is responsible for financing the operations of the federal government. True or false? Explain. (b) Changes in reserve requirements are an effective monetary policy tool that the Fed uses frequently to control the money supply. True or false? Explain.Year Money Supply (M1) (BBD million) Inflation Rate (%) 2014 1,945.8 1.77 2015 2,001.6 -1.11 2016 2,057.4 1.28 2017 2,113.2 4.66 2018 2,169.0 3.67 2019 2,224.8 4.10 Based on the data from Barbados, do you agree with the central bank’s decision to pursue a contractionary monetary policy? Explain why or why not.2. Please Solve the subpart a,b,c max in 30 minutes thank u a) Explain what is meant by monetary system and monetary authority!b) Explain the difference between Commercial Bank and BPR!c) Describe the actors in the Indonesian monetary system!
- (A) If real GDP is growing by 3% a year, what should the Fed do to the money supply to keep prices constant? Assume velocity is constant. If velocity is constant and nominal GDP increases by 5% what is happening to the money supply?4. When a Central Bank takes action to decrease the money supply and increase the interest rate, it is following a) a quantitative easing policy. b) a expansionary monetary policy. c) a contractionary monetary policy. d) a loose monetary policy.i. Why is it said that money is as money does? Does the Pakistani rupee perform all functions of money? Justify your answer. ii. Compare Keynes Liquidity Preference Theory with the classical quantity theory of money. iii. Explain measurement of money and money creation in Pakistan. iv. What are tools of Monetary Policy? What should be monetary policy in developing countries like Pakistan
- 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 answerIf the central bank sells government securities from the private sector-money markets,other things being equal, what would the effect be on the following?The economy’s monetary base, Short-term money market interest rates, Investment, Aggregate demand, Aggregate supply, economic activity, Inflation, UnemploymentJapan's money supply is growing rapidly at a 5.54% while real GDP is increasing at 8.29%. Japan's real interest rate is also growing at 4.46%. *we are assuming Quantity Theory of Money, Classical Dihotomy, and Fisher Effect effect are true. a. calculate the inflation rate b. calculate nominal interest rate c. calculate GDP growth rate
