Recently, Bangladesh bank increased the money supply which caused the interest rate to fall. Which theories can be used to explain and analyze the given situation? What does these theories predict? Discuss in detail using diagrams.
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Recently, Bangladesh bank increased the money supply which caused the interest rate to fall.
Which theories can be used to explain and analyze the given situation? What does these theories
predict? Discuss in detail using diagrams.
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- What does the invisible hand concept, introduced by Adam Smith, refer to in economics? A. The role of government in regulating markets B. The self-regulating nature of markets where individuals pursuing their own self-interest unintentionally benefit society C. The importance of charity and philanthropy in economic development D. The role of central banks in controlling interest ratesWhich of the following areas are addressed in the study of economics? (check all that apply) A. Inflation ratesInflation rates. B. Pollution reduction policiesPollution reduction policies. C. The costs associated with a decisionThe costs associated with a decision. D. Financial marketsFinancial markets.##Ecinomics please Classify each of the following statements as positive or normative. Explain.a. Society faces a short-run trade-off between inflation and unemployment.b. A reduction in the rate of money growth will reduce the rate of inflation.c. The Federal Reserve should reduce the rate of money growth.d. Society ought to require welfare recipients to look for jobs.e. Lower tax rates encourage more work and more saving.?
- The purpose is to know if you can define each concept through a clear and precise explanation. Imagine that you are going to explain each term to someone who does not know anything about macroeconomics; With this in mind, the explanation should be as clear and simple as possible (not brief). Write a minimum of three sentences per term.1. capital market2. capital injection3. financial systemConsider the simple quantity theory of money. Which variables are exogenous?(Choose one or more.)A The stock of money.B The demand to hold money.C The (exchange) value of money.D The purchasing power of money.E The average level of prices.Macroeconomics deals with the analysis of all of the following questions except Question 18 options: a) Why do nation’s grow? b) How does a central bank increase a nation’s money supply? c) Why does a country experience inflation d) How does Microsoft price its software packages?
- What does the term exogenous money supply mean? a. The money supply is determined by external factors b. The money supply is controlled by households c. The money supply is determined by the central bank d. The money supply is determined by market forces.Microeconomics includes all of the following EXCEPT. (A) the effect of increasing the money supply on inflation (B) the purchasing decisions of an individual consumer (C) the effect of an increase in cigarette tax on cigarette sales (D) the hiring decisions a firm makesSelect economic problem occuring from an increase in the money supply and explain what happens.
- Clasify each of the following statements as positive,or normative.Explain.a.Society faces a short-run trade-off between inflation and unemployment.b.A reduction in the rate of money growth will reduce the rate of inflation.c.The Federal Reserve should reduce the rate of money growth.d.Society ought to require welfare recepients to look for jobs.e.Lower tax rate encourage more working and more saving.Watch Jonathan Jarvis’ 2009 video The crisis of credit visualized and answer the following questions: Did individuals with poor credit rating make smart choices for themselves with no down payment and interest only mortgage payments when they bought high-priced homes prior to the Great Recession? Why or why not? Based on the video, discuss if the miracle of markets worked or failed to work to produce positive macroeconomic outcome.Why isn’t money considered capital in economics? Which of the following are microeconomic issues? Which are macroeconomic issues? a. How will an increase in the price of Coca-Cola affect the quantity of Pepsi Cola sold? b. What will cause the nation’s inflation rate to fall c. How does a quota on textile imports affect the textile industry? d. Does a large federal budget deficit reduce the rate of unemployment in the economy? Explain the importance of the ceteris paribus assumption for an economic model. Analyze the positive versus normative arguments in the following case. What statements of positive economics are used to support the requiring of airbags? What normative reasoning is used? Should the Government Require Air Bags? Technological advances continuously provide new high-tech options to save lives that add to the price of cars, such as cameras, radar, and airbags. Airbag advocates say airbags will save lives, and the government should require them in all cars.…
