Question

(I posted the first half before) (This is the second half) Can someone please properly answer...

(I posted the first half before) (This is the second half) Can someone please properly answer and if possible, explain each question/answer. This is a review sheet for my Macroeconomics Final. I know it's a lot of questions, but it would really mean a lot if someone could help. I'd greatly appreciate it.

And also, please (TYPE) everything out.

16- Explain how buying securities from the banks by the Federal reserve impact the money supply and the interest rate.

17- Explain how decreasing the reserve ratio requirement by the Federal reserve impact the money supply and the interest rate.

18- Explain how increasing the discount rate by the Federal reserve impact the money supply and the interest rate.

19- Draw a short-run Aggregate Supply curve and a long-run Aggregate Supply curve and explain why they are different.

20- Draw a short-run Aggregate Supply curve and show the economic maximum (capacity) output part of the curve. Explain why it is vertical.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1


0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
To increase aggregate demand in the short-run, the Federal Reserve can Question 3 options: decrease the...
To increase aggregate demand in the short-run, the Federal Reserve can Question 3 options: decrease the money supply. increase the money supply. increase taxes. decrease taxes. When the Federal Reserve decreases the money supply, Question 2 options: the equilibrium interest rate increases. the aggregate-demand curve shifts to the right. the quantity of goods and services demanded is unchanged for a given price level. the short-run aggregate-supply curve shifts to the left.
What would happen in the short-run and long-run to C, I, G, NX, AD, AS, P,...
What would happen in the short-run and long-run to C, I, G, NX, AD, AS, P, Q, inflation and economic growth if the Federal Reserve Bank increased the money supply? Make sure to include the 4 tools for how they would increase the money supply and how this would impact 1) interest rates (include a money graph) and 2) inflation and output (using the AD/AS graph.)
Hi there! Could someone please answer this for me? I would greatly appreciate it, and will...
Hi there! Could someone please answer this for me? I would greatly appreciate it, and will totally like your answer! Length isn't necessarily important, just needs to be accurate and such. Thanks in advance!!!!!!! (I am supposed to include references when using examples, or include the link from where you got it and I can format the reference). "Explain your understanding of the differences between liabilities and owners’ equity, giving examples of each"
Explain why nominal wage is "sticky" in the short run, and why the short-run aggregate supply...
Explain why nominal wage is "sticky" in the short run, and why the short-run aggregate supply curve is upward sloping? Explain why the long-run aggregate supply curve is a vertical line. Part b (10 points) In labor macroeconomics, the process to determine nominal wage between the employer (firm) and the workers, commonly known as the wage determination process is often illustrated as the following graph. Explain in words the wage determination process. Hint: The wage determination process indicates how an...
Explain how the Federal Reserve’s lowering of interest rates affects the following variables in the short...
Explain how the Federal Reserve’s lowering of interest rates affects the following variables in the short run: household consumption, business investment, real GDP, and the price level. Insert or attach a well-labeled Aggregate Demand/Aggregate Supply graph that would illustrate the effect of a cut in interest rates. What is one macroeconomic problem that could cause the Federal Reserve to become aggressive in raising interest rates? Explain. Describe one issue that could cause the Fed to lower rates? Define the “federal...
Consider the short-run money market model and the short-run exchange rate model together: a. Draw the...
Consider the short-run money market model and the short-run exchange rate model together: a. Draw the combined models in a single graph, showing the initial domestic interest rate (r1) and the initial exchange rate (e1) b. Show how the short-run model would change with a decrease in domestic money supply, specifically noting the impact on domestic interest rates, exchange rates, and the price level c. Following on from part (b), explain why the exchange rate changes d. In the long-run,...
ECO - 252 -- Macroeconomics 7. True/False statements. Simply state if the statement is true or...
ECO - 252 -- Macroeconomics 7. True/False statements. Simply state if the statement is true or false. No explanation required. a. In the AD-AS Model, the wealth effect refers to a decrease in the interest rate that in turn increases consumption and investment. b. Ceteris Paribus, a decrease in the price level causes the interest rate to decrease, which leads to a depreciation of the dollar in the foreign-currency exchange. c. The aggregate demand curve slopes downward because it is...
*** please do not use answer to the same question that was posted earlier today. I...
*** please do not use answer to the same question that was posted earlier today. I think the person's answer was incorrect. How much money will be in a savings accounts after 5 years if $150 is initially deposited in the account, $150 is deposited each month in the account and interest is compounded continuously at 9% per year?
Let’s say the Federal Reserve buys $20 Billion in bonds from private banks: *Total reserve requirement...
Let’s say the Federal Reserve buys $20 Billion in bonds from private banks: *Total reserve requirement = 0.10 x $1Trillion = $100 Billion What is the total amount (in $) of reserves that banks can lend? Using the simple deposit multiplier, how much additional money (M1) is created by this process? What will happen to the Federal Funds Rate, the prime rate, and other nominal interest rates in the economy? (Go up, down, stay the same?) Why? If the price...
-State whether each of the following events shifts either the aggregate demand or the short-run aggregate...
-State whether each of the following events shifts either the aggregate demand or the short-run aggregate supply curve. -Explain why the curve shifts. -Describe what happens to the short-run equilibrium price level, aggregate output, and the national unemployment rate because of the event. -Illustrate your answer with a graph. -Analyze each event independently. A. In the manufacturing sector, output per labor hour (productivity) increased approximately 6% in the fourth quarter of 2017. B. Climate change increases agricultural production costs. Weeds,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT