Which of the following reduces the interest rate? a. a decrease in government expenditures and a decrease in the money supply b. an increase in government expenditures and an increase in the money supply c. an increase in government expenditures and a decrease in the money supply d. a decrease in government expenditures and an increase in the money supply

Which of the following reduces the interest rate? a. a decrease in government expenditures and a decrease in the money supply b. an increase in government expenditures and an increase in the money supply c. an increase in government expenditures and a decrease in the money supply d. a decrease in government expenditures and an increase in the money supply

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 5WNG

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Experimental exercise Argue on the following premises: If the income of the economy increases and the Central Bank does not want to increase the money supply, interest rates must be lowered. Graph. If the money supply increases, the interest rate must rise to balance the money market. Graph. If the money supply were increasing with the interest rate, what would the graph of said curve look like? (Draw it)
2.Which of the following is an example of monetary policy? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a A change in taxes b A change in the money supply c A change in the interest rate d A change in the price level
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Consider a simple economy that produces only cell phones. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2018, the money supply was $280, the price of a cell phone was $7.00, and the economy produced 600 cell phones. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Year Quantity of Money Velocity of Money Price Level Quantity of Output Nominal GDP (Dollars) (Dollars) (Cell phones) (Dollars) 2018 280 7.00 600 2019 294 15 600 The money supply grew at a rate of_____ from 2018 to 2019. Since cell phone output did not change from 2018 to 2019 and the velocity of money _____ , the change in the money supply was reflected _____ in changes in the price level. The inflation rate from 2018 to 2019 was ______ .
Is it possible that money supply can be more than the money demand (this means that we can have too much money)?
Need help with economic questions 1. Using a supply and demand diagram for each of the following scenarios, show how the market for money is affected in the long run. Explain your answer. (a) Everyone subscribes to r/WallStreetSilver, and starts investing in silver and gold. (b) Commercial banks raise their mortgage rates, even though the Bank of Canada retains a low Bank Rate. (c) The Bank of Canada prints money and mails $1,000 to every Canadian.
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Corna - virus Pandemic has affected many people in Barbad0s, causing not being able to work , which resulted in a reduced activity in the economy.1. Carefully explain with use of graph the effect of reduced activity in the economy on the Money/financial market. Identify 0ne policy along with the aim of said policy enacted by the government(Barbados) to deal with reduced activity in the economy because of the Pandemic. 2. Using the same graph from question-one illustrate and described the impact of the policy-enacted.3. Discuss two monetary policies that could be introduced by the central-bank which would have the same impact as the policy identified in question two that was enacted by the government.4. From the three policies from question 2 and question 3 , identify one that would be most effective and why?

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	a.	a decrease in government expenditures and a decrease in the money supply
	b.	an increase in government expenditures and an increase in the money supply
	c.	an increase in government expenditures and a decrease in the money supply
	d.	a decrease in government expenditures and an increase in the money supply