Question

The government (and the central bank) has an easier job of dealing with the macroeconomic impacts...

The government (and the central bank) has an easier job of dealing with the macroeconomic impacts of consumers and investors being pessimistic about the future of the economy than the period of stagflation. Do you agree? Explain

Homework Answers

Answer #1

ANSWER :-

Given that

The government (and the central bank) has an easier job of dealing with the macroeconomic

That  impacts of consumers and investors being pessimistic about the future of the economy than the period of stagflation.

Yes I agree.Because ,

Stagflation happens when an economy is experiencing stagnation and expansion, which implies there is no monetary development, high joblessness, and significant expenses then consumers and investors being pessimistic about the future of the economy

The government (and the central bank) has an easier job of dealing with the macroeconomic impacts of consumers and investors being pessimistic about the future of the economy than the period of stagflation. is true

Thank you

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
  3.   Suppose that consumers become pessimistic about the future health of the economy, and so cut back...
  3.   Suppose that consumers become pessimistic about the future health of the economy, and so cut back on their consumption spending. What will happen to aggregate demand and to output? What might the government have to do to keep output stable?             4.   Suppose the Federal Reserve, which is the central bank of the U.S., decided to lower the monetary policy interest rate. Use the macroeconomic model to analyze the possible effects of this event on Canada’s net capital outflow, net exports, and...
If the head of the central bank wants to expand the supply of money, which of...
If the head of the central bank wants to expand the supply of money, which of the following would do it? Explain how the policy impacts the money supply, and find the policies that might increase the money supply. 1. Increase the required reserve ratio 2. Decrease the required reserve ration 3. Increase the discount rate 4. Decrease the discount rate 5. Buy government securities in the open market 6. Sell government securities in the open market 7. (Review for...
An Independent Central Bank · Why is it important for the central bank to have both...
An Independent Central Bank · Why is it important for the central bank to have both autonomy and accountability?  (Note: autonomy is defined as “freedom from external control or influence; independence.) ·         Do you think that the United States Federal Reserve has too much power and influence over our economy? Why or why not? The Federal Reserve Board ·         Review the biographies of each of the seven members of the Board of Governors. What can you say about the composition of...
Chapter 11, 12: Money and Inflation I. If the head of the central bank wants to...
Chapter 11, 12: Money and Inflation I. If the head of the central bank wants to expand the supply of money, which of the following would do it? Explain how the policy impacts the money supply, and find the policies that might increase the money supply. 1. Increase the required reserve ratio 2. Decrease the required reserve ration 3. Increase the discount rate 4. Decrease the discount rate 5. Buy government securities in the open market 6. Sell government securities...
Question 2 To support private sector employees, the government of Bahrain has decided to pay their...
Question 2 To support private sector employees, the government of Bahrain has decided to pay their salaries for three months starting April 1, 2020. Total expenditures by the government is expected to exceed BD550 million to “mitigate the social and economic impacts of the coronavirus pandemic, and to maintain the growth of the private sector and enhance its vital role in supporting the wheel of the national economy”. a. What is the real cost of government expenditures? Think about your...
You walk into the offices of Global Private Bank early in the morning on February 2nd,...
You walk into the offices of Global Private Bank early in the morning on February 2nd, 2006. You are employed by the bank to market proprietary financial products to moderate to high net worth customers. Going into the break room to grab a cup of coffee, you flip on the TV to CNBC to catch the morning financial news. The commentator says “… and the latest release shows that consumer confidence has fallen for the second straight month. Given this,...
Whatever It Takes: How the Fed Aims to Rescue the Economy The central bank is using...
Whatever It Takes: How the Fed Aims to Rescue the Economy The central bank is using tactics from the last financial crisis and deploying new ones to keep money flowing. Here are the basics. The Federal Reserve, under Jerome H. Powell, is moving to shore up the American economy during the coronavirus pandemic. Credit...Yuri Gripas/Reuters By Ben Casselman March 23, 2020 The Federal Reserve on Monday pledged to do, in essence, whatever it takes to keep the economy from collapsing...
China Moves to Tighten the Money Supply By DAVID BARBOZA – January 6, 2007 China’s central...
China Moves to Tighten the Money Supply By DAVID BARBOZA – January 6, 2007 China’s central bank said late Friday that it had raised the reserve requirement ratio for banks, the fourth increase in six months, to further tighten the nation’s money supply. The modest move, which takes effect this month, increases the reserve ratio by half a percentage point, to 9.5 percent. Analysts said it was the government’s latest warning that too much money in the financial system could...
Initially, the Republic of Gorgonzola has no commercial banking system. Then, the government directs the central...
Initially, the Republic of Gorgonzola has no commercial banking system. Then, the government directs the central bank of Gorgonzola to put into circulation 2,000,000 identical paper notes, called guilders. The central bank prints the guilders and distributes them to the population. In order to safeguard the money, some Gorgonzolan entrepreneurs set up a system of commercial banks. When people need to make a payment, they can either withdraw their guilders or, more conveniently, write a check on their account. Checks...
Chinese government purchases foreign currency from exporting companies by the central bank to maintain the exchange...
Chinese government purchases foreign currency from exporting companies by the central bank to maintain the exchange rate of the RMB to foreign currencies unchanged. When there are some external factors increasing Chinese net exports (such as the increased demand for Americans to buy Chinese products), the final equilibrium result will result in China’s net exports and net capital outflows ( ), domestic savings ( ) , domestic interest rate ( ). A. unchanged, unchanged, unchanged B. increase, unchanged, unchanged. C....