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Problem 1. Describe the three tools of monetary policy. Problem 2. Find an article that shows a change in the US monetary policy.
Explain the expected short term impact on two firms picked from the following list, in terms of product sales and operating costs.
Question: What is the Federal Reserve (Fed) all about? Which Federal Reserve District Bank is closest to you?
(a) Explain the different types of corporations in this answer. (b) Describe the major characteristics of a large publicly traded corporation.
Question: You are currently running your own small business with annual revenue of $150k and accountant costs of $60k.
The key to understanding the money creation process is the fact that:
The main goal is to distinguish between correlation and causality; economics is interested in causal relationships but these easily confused with correlations.
What are the costs of higher education? What method would you use to assign a monetary value to a university degree? Examples using fictitious data are welcome.
Suppose that the Federal Reserve sells $5 million worth of government securities to General Motors. What is the effect on the quantity of bank reserves?
Question: Explain the different measures of the money supply, and explain why the different definitions are important.
Question: Of the following three activities one is included in the calculation of GDP:
What stage of business cycle is the economy going through? Give several major econ indicators, for example, inflation, unemployment, econ growth, poverty rate.
What is the maximum amount the bank could currently lend out? Show all work.
Can they do something about the budget deficit? Is there a relationship between fiscal and monetary Policy?
Question 1: What is the Money Multiplier? Question 2: How does the Federal Reserve System shape the Monetary Policy?
Most economists consider interest rates to be the principal instrument by which monetary policy affects economic activity.
Explain thoroughly why credit cards are not technically money.
Should they issue the bonds now or wait for one year if they feel the Federal Reserve will follow: a. an expansionary policy? b. a contractionary policy?
Question: An elderly consumer's only income is his monthly Social Security check.
How would the effectiveness of an expansionary monetary policy change if exchange rates were fixed?
Question: What are the uses of money? How do banks create money?
Problem 1: Define money and list the functions it performs.
Which of the following is NOT an example of an externality? Explain why the other examples are externalities and why the one you selected is not.
Should the government prohibit, regulate, or allow adoptive parents to pay the birth mother directly?
- What are the key tools of fiscal policy and monetary policy - Why might each of these policies not be effective in reducing high levels of unemployment