Question

TOPIC: Determining the money supply and multiplier during the Great Depression versus the Great Recession of...

TOPIC: Determining the money supply and multiplier during the Great Depression versus the Great Recession of 2007-2009. A) Identify the factors that determine the money supply. B) Write down the multiplier C) For each factor, explain which player(s) control or influence it. D) Determine how and why they affect the size of money supply. E) Explain the impact of all these factors on the money supply during the Great Depression of 1930's and the Great Recession 2007-2009.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1) The correct answer is option A) because the real value of money decreases as less amount of goods can be purchased.

2) The correct answer is option D) because the changes in the money supply determines the changes in interest rate.

3) The correct option is answer B) because demand for money is inversely related to interest rate. Thus individuals holds more money when interest rate falls.

4) The correct answer is option B) because main purpose of monetary policy is inflation targeting.

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
During the Great Recession, consumer sentiment in the United States declined, leading to a decrease in...
During the Great Recession, consumer sentiment in the United States declined, leading to a decrease in consumer spending. Which of the following factors caused this decrease in consumer sentiment? a. an increase in tax rates b. a decrease in expected income c. a decrease in the money supply d. an increase in household wealth e. falling gasoline prices During the Great Depression, aggregate demand in the U.S. economy decreased. As a result, the unemployment rate _________ and the price level...
1) Which statement about the Great Recession of 2008 is FALSE? The large collapse in output...
1) Which statement about the Great Recession of 2008 is FALSE? The large collapse in output and employment that occurred after September 2008 was the result of the financial crisis. The Federal Reserve made the crisis worse by using conventional monetary policy to lower interest rates. The Great Recession of 2008 was caused by a large fall in aggregate demand. The use of conventional monetary policy proved to be incapable on its own of stopping the large fall in output...
During "normal times" the Federal Reserve pursues open market operations to affect the money supply and...
During "normal times" the Federal Reserve pursues open market operations to affect the money supply and interest rates in the economy. For instance, during normal times, if the FED wanted to reduce short-term interest rates, it would buy short-term Treasury securities from the public. The FED's purchase of securities allows it to inject liquidity (money) to the financial system. In contrast, during "exceptional times", the FED may pursue "unconventional" monetary policy to affect interest rates. During the implementation of the...
Supply and Demand. I need to write a forum on economics using the manager’s perspective on...
Supply and Demand. I need to write a forum on economics using the manager’s perspective on how to maximize profits using supply and demand. Using at least 75 words to explain. This is some of the chapter on supply and demand. Supply and demand analysis is a qualitative tool which, empowers managers by enabling them to see the “big picture.” It is a qualitative forecasting tool you can predict trends in competitive markets, including changes in the prices of your...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How many months has the U.S. economy been in this stage of the business cycle? ___________ months 2. How long has the current expansion/recovery lasted to date? _________________ How does this compare to the average length of U.S. recessions since 1854? ______________________________. 3. What do the last four recoveries/expansions (that is, the current recovery/expansion and the previous three recovery/expansions), suggest about a new trend in...
Chapter 11: 1.Even before the economic crisis of 2007 to 2009, employees in the United States...
Chapter 11: 1.Even before the economic crisis of 2007 to 2009, employees in the United States were working about _____ more hours per year than their European counterparts. a. 70 b. 249 c. 350 d. 1,970 2. In 2005, about 20% of home loans were _____, meaning they were loans sold to low-income people who had little chance of paying their mortgages, often under predatory terms that were especially unfavorable to the unsuspecting borrowers. a. subprime triple-A rated c. fixed-rate...
read Seasons of Love chapter:measuring a child's life after suicide. please answer the questions : reflect...
read Seasons of Love chapter:measuring a child's life after suicide. please answer the questions : reflect on what happens to the families when there is a suicide in the family, based on the Seasons of Love chapter...how should people be told? What details are best left unshared? below is the story These theories may have a certain face-validity, but they often neglect environmental or contextual factors that are innate to answering the question of “why” a person might engage in...
During the trial, lawyers for the accused said that the men believed that the accounting decisions...
During the trial, lawyers for the accused said that the men believed that the accounting decisions they made were appropriate at the time, and that the accounting treatment was approved by Nortel’s auditors from Deloitte & Touche. Judge Marrocco accepted these arguments. Marrocco added he was “not satisfied beyond a reasonable doubt” that the trio (i.e., Dunn, Beatty, and Gollogly) had “deliberately misrepresented” financial results. Given the facts of the case, do you believe Judge Marrocco’s decision was justified? Explain....
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
Project Integration Management Questions Only A team member notifies you, after the fact, that she has...
Project Integration Management Questions Only A team member notifies you, after the fact, that she has added extra functionality to the project. There was no impact on the cost or schedule. What should be done as a result of this change? Make sure marketing is aware of the change. Implement change control processes to track the change. Inform the customer. Understand what functionality was added. You are having difficulty getting a project underway. You have not been able to get...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT