What measurement focus is used in government-wide financial statements? The government has just lowered personal income taxes. . Which public health and safety agency would be most likely to investigate the safety of a new over-the-counter medicine? Which of the following best describes an contractionary monetary policy? Classify the actions described as examples of expansionary monetary policy (intended to stimulate the economy), contractionary or restrictive monetary policy (meant to slow down the economy), or not an example of monetary policy. When a company issues stock, it is agreeing to share the company's __ and __ with the investor. Assume of 8% reserve requirement in the U.S. and that Bank of America account holds no excess reserves: securities as a form of monetary policies 1 See answer Advertisement cainlee401 The Correct Anser Would Be "A" 1. the loanable funds market. Contractionary monetary policy is when a central bank uses its monetary policy tools to fight inflation. During the press conference after the meeting, a reporter asks you to explain what OMOs are and how you will use them to increase the money supply. Correct answers: 2 question: Deficiencies in which vitamin are the most prevalent worldwide? If the economy is suffering from extremely high rates of inflation, how should the government intervene from the standpoint of a classical economist? Q. refers to government revenue, spending, and debt. e. Contractionary monetary policy directly pulls money out of loanable funds market. large quantities of counterfeit banknotes could decrease the value of Australian money, Suppose that a central bank pursues expansionary monetary policy by purchasing bonds. I love you Bubbas. Which statement best describes the idea of monetarism? The interest rate that the Federal Reserve Bank (Fed) charges member banks for loans is knowns as the _______________. Question 13 A system where goods and services are exchanged directly without a common unit of account is called the: Correct Answer: barter system. Increase government spending and decrease taxes. Change in interest rate impacts the investment spending. Which event is most likely an outcome of research by the Environmental Protection Agency? - The amount a bank has on hand fulfill the cash demands of its customers and the reserve requirements of the Fed. Banks must lend out all their excess reserves in order to change the M1 money supply. According to the figure, if the economy started at full-employment output, expansionary monetary policy would cause real gross domestic product (GDP) to ______________ in the short run. According to the figure, expansionary monetary policy will cause an economy that is initially at full-employment output to go from equilibrium ______ to equilibrium ______ in the short run. A portion of the data is shown. B. Business. 4. A company has been running an assembly line with 97.42%%97.42 \% \%97.42%% of the products made is acceptable. Which statement about executive orders is accurate? Reserves = ? 2010 0% 3. Which of the following explains expansionary monetary policy in the long run? Explain the U. monetary policy experience of the 2000-2017 period in the context of Federal Reserve priorities and monetary policy actions. It limits the printing and circulation of new money. Capitalist governments role is limited to regulating and taxation. Which policy is appropriate when a rising aggregate price level is a concern but GDP is growing at an acceptable rate? True or False: Horses Contractionary monetary policy is a strategy used by a nation's central bank during booming growth periods to slow down the economy and control rising inflation. A new technology is discovered that promises an increase in cheap computing power in the future. Beginning in January, a person plans to deposit $100\$ 100$100 at the end of each month into an account earning 6%6 \%6% compounded monthly. Which phrase best defines the term lobbyist? the maximum amount by which the U.S. money supply can grow as a result of the family deposit. True or False: To curb inflation and reduce the money supply,. Which of the following would be LEAST likely to occur during an expansionary gap? Investment is a Which goal of foreign policy in included in all the other goals? What does the word 'fiscal' refer to when discussing fiscal policy? Banks in Ruritania have a required reserve ratio of 5%. It's how the bank slows . Excess Reserves = ? The Servicemen's Readjustment Act of 1944, also known as the G.I. President Lyndon B. Johnson created a set of programs that were known as the Great Society. contractionary or restrictive monetary policy (tight monetary policy). Contractionary monetary policy is the opposite of expansionary monetary policy. For instance, when the Fed buys bonds, this (2) _________ in demand for bonds causes nominal interest rates to (3) _________. component of. What does a contractionary gap indicate about output in the short-run? B. a cyclical downturn in the economies of primary trading partners. When the economy is growing too slowly (recession) or too quickly (high inflation), the two approaches the government can use, according to economists, include which of the following? Survey at least The demand for physiotherapists, at physiotherapy clinics. Which of the following tax rates may affect an individual's decision to work harder and earn additional income? Which approach to fiscal policy involves and increase in taxation and decrease in spending? It includes currency in circulation, checking account deposits and travelers checks. 1. indirectly What is an example of an item that would fall under mandatory spending? Researchers announce that they anticipate a breakthrough in the effectiveness of training for low-skills workers within the next decade. In the U.S., banks keep the entire value of all customer deposits in the bank vault to meet customer withdrawals. Which policy perspective sees foreign affairs as a network of connected interests that can be best influenced by diplomacy? Which of the following best describes the 'repeal and replace' of a law? (Refer to Quizlet Guide Picture #1), What are the bank's reserves in Table 2? the left. Which of the following is true about fiscal policy? 30 points and i will give brainliest the club will base its decision about whether to increase the budget for the indoor rock climbing facility on the analysis of its usage. Since Estrovia has inflation rate of 9% as compared with average of 4%, her central bank should implement a contractionary monetary policy to lower the inflation rate, otherwise the economy will heat up and hit a severe recession. - $4500. The Taylor rule helps the chairman to determine the target: Calc. Business Economics Classify the actions described as examples of expansionary monetary policy (intended to stimulate the economy), contractionary or restrictive monetary policy (meant to slow down the economy), or not an example of monetary policy. She quickly walks to checkout line where she pays the cashier for her new dress. - Managing China's money supply. D. The stock of money consists largely of notes and coins. - The ability to target interest rates in the economy TO increase money supply, we will buy gov. A decrease in the money supply will lower the interest rate, increase investment spending, and increase aggregate demand and RGDP. Label the scenarios with the type of monetary policy lag represented in each. The Federal Deposit Insurance Corp. (FDIC) protects bank depositors from bank failure. (Refer to Quizlet Guide Picture # ) What is the maximum possible increase in the money supply as a result of your bank account? (Refer to Quizlet Guide Picture # ) What would be the most likely predictions people make about the inflation rate for 2016 based on adaptive and rational expectations theories, respectively? A foreign entity holding cash is considered a leakage in the economy. Consider the graphs, which show aggregate supply (AS) and the change in aggregate demand (AD) from AD1 to AD2 that will result from the monetary policies. 1 An economy that grows more than 3% creates four negative consequences. Transcribed Image Text: Suppose the demand for a product is P = 150-Q and that the marginal cost of producing the product is $30. - Engaging in fiscal policy Investment is a component of aggregate demand, so this shifts aggregate demand to the right. 'Crowding out' refers to which of the following? What is the first step toward becoming a U.S. Supreme Court judge, according to Article III of the Constitution? If a nation is operating at full employment and the central bank engages in contractionary monetary policy, how will the interest rate and the unemployment rate change? What system is applied to calculate the timing of revenue and expense recognition? This raises the interest rate, which Most often, the prices that are inflexible are: Which of the following best describes how expansionary monetary policy affects the aggregate demand curve in the aggregate demand-aggregate supply model? unexpectedly gives each person in the economy an extra $1000 tax refund. Literally trading one good for another without using money, A situation where two individuals each want some good or service that the other can provide, Whatever serves society in three functions: medium of exchange, store of value, and unit of account, Are these an example of commodity money or or fiat money: c. Section 11(c) of the OSH Act. According to the figure, contractionary monetary policy will cause an economy that is initially at full-employment output to go from equilibrium __________ to equilibrium __________ in the short run. Compose a letter briefly describing the background of the problem. answer choices . Investment is a Once the Federal Reserve lowers interest rates, businesses and consumers are slow to increase borrowing as a result. Become familiar with the notions of "liquidity trap" and "credit rationing." Assume a required reserve ratio of 10%. They must fall within the powers assigned to presidents by the Constitution. 2003-2023 Chegg Inc. All rights reserved. In this equation, M is the supply of money, V is the velocity of money, P is the price level, and Q is real output. * a. more spending b. more savings c. increase in money supply d. lower interest rates e. none of the choices Expert Solution Want to see the full answer? The Federal Reserve sells bonds via the commercial banking system. Consumer spending depends on both the income and wealth of people in the economy. Banks in Ruritania have a required reserve ratio of 5%. Which of the following best describes the effect on the SRAS curve if political negotiations result in a substantial decrease in the price of oil? Suppose the economy was experiencing a. It increases investment, which increases aggregate demand and creates jobs. Data on GDP is release quarterly, meaning that an economic downturn beginning in January may not be identified until more than three months later. He is now 45 and deposits his savings into a bank. The ABC Toy Company makes a few types of toy cars on one of its production line. c. marginal revenue equals marginal cost. Which of the following statements best describes monetary policy during the Great Recession? (2) ________ suffered under interest rates of 25% after the recession hit the shipping industry hard. How does a progressive tax code affect consumers? - What is the simple money (deposit) multiplier? Which of the following is true of a central bank that employs inflation targeting? Raise taxes and decrease government spending. Which is true about actual economic output during different times of the business cycle? Match each policy with the graph showing the corresponding shift. b.) Italy, Suppose that you are employed as an advisor to the central bank. Policies help guide organizations--including governments--in achieving their goals. some ways they avoid or reduce each When there is a downside gap between actual equilibrium, real GDP, and the full-employment level of real GDP, what do economists call this? Its impact was mostly positive as Western Europe became or remained strongly democratic. Immediately after the February 2023 rate hike, CBA amended its predictions to expect two further rate hikes in March and April 2023, bringing the cash rate to a peak of 3.85 per cent, which it described as "deeply restrictive territory" for monetary policy. real gross domestic product (GDP); unemployment. The following table describes the aggregate demand curve, where real GDP is expressed as the percent deviation from potential GDP and inflation is expressed as a percentage: Real GDP 2.0 1.0 0.0 -1.0 -2.0 Inflation 0.0 X % 3.0 4.0 5.0 7.0 9.0 Due to a price shock, inflation increases by 2%. Select the statement the best defines required reserves: The amount of banks required by law to hold on each deposit. Refer to the following figure to answer the questions that follow.According to the figure, if the economy started at full-employment output, expansionary monetary policy would cause real gross domestic product (GDP) to ______________ in the short run. Which of the following best describes how contractionary A decrease in a country's total imports is most likely caused by: answer choices. Samples of 500 pieces were selected at random, and the defective rate was found to be 0.025%0.025 \%0.025%. Option C Due to expansionary monetary policy, LM curve would shift to right leading to decrease in market interest rate . Money can never lose its usefulness as a unit of account. the right. Monetary policy is the domain of the U.S. Federal . Refer to the following figure to answer the questions that follow. During which century did the federal government begin to regulate businesses in the U.S.? Which one of the following statements is correct? provides a larger incentive for firms to invest. The economy has entered a recession with high unemployment. What is the amount that Robina Bank must keep on hand as required by the Federal Reserve (Fed)? It began the process of school desegregation. His pennies total $5000. The interest rate of the Federal Reserve charges commercial banks for loans is the ______________.