Suppose that you are employed as an advisor to the central bank. Select the proper policy recommendation or economic prediction for each of the following scenarios.
Which policy is appropriate when a rising aggregate price level is a concern but GDP is growing at an acceptable rate?
- expansionary monetary policy (easy money policy)
- It is unclear which type of monetary policy is appropriate.
- contractionary or restrictive monetary policy (tight money policy)
Which policy is appropriate when a rising aggregate price level is a concern and GDP is not growing at an acceptable rate?
- It is unclear which type of monetary policy is appropriate.
- expansionary monetary policy (easy money policy)
- contractionary or restrictive monetary policy (tight money policy)
Contractionary or restrictive monetary policy (tight money policy) will cause interest rates to
- decrease.
- increase sometimes and decrease sometimes.
- increase.
Answers
Answer:
1. contractionary or restrictive monetary policy (tight money policy)
2. It is unclear which type of monetary policy is appropriate.
3. increase.
Explanation:
Recall that monetary policy typically implies a tradeoff between GDP and inflation. This can be illustrated with a graph depicting aggregate demand (AD) and aggregate supply (AS).
Expansionary monetary policy describes actions that increase the money supply. As more money is put into circulation, the interest rate declines, and consumption and investment spending increase. Thus, expansionary monetary policy causes the AD curve to shift to the right. This increases GDP but also implies that the price level rises (also known as inflation). Contractionary monetary policy has the opposite impact: a decrease in GDP and a decrease in the price level.
For the first scenario, contractionary monetary policy is appropriate. This type of policy response would address concerns of inflation. The downward pressure on GDP is not too troubling because GDP is said to be growing at an acceptable rate.
For the second scenario, it is unclear how monetary policy should be used. Expansionary monetary policy would help stimulate GDP but would exacerbate the problems associated with inflation. Contractionary monetary policy would help with inflation but would worsen the lack of economic growth.
Contractionary monetary policy causes interest rates to increase.
Contractionary or restrictive monetary policy (tight money policy) is appropriate when a rising aggregate price level is a concern but GDP is growing at an acceptable rate. The correct option is C.
How does contractionary monetary policy affect price level?The economy has less loanable money when there is a contractionary policy in place. The price of borrowing money increases as interest rates rise because, like with all goods, scarcity increases the price.
In this scenario, inflation is a concern as the aggregate price level is rising, indicating that the purchasing power of money is decreasing. A contractionary monetary policy, such as raising interest rates or reducing the money supply, can help to reduce inflationary pressures and stabilize prices. While this policy may slow down economic growth to some extent, it is still appropriate in this situation since GDP is already growing at an acceptable rate.
Thus, the ideal selection is option C.
Learn more about monetary policy here:
https://brainly.com/question/29694955
#SPJ2
Related Questions
Who were the Afrikaners in South Africa? white people whose families came from Dutch colonists black people whose families came from Dutch colonists white people whose families were originally from South Africa black people whose families were originally from South Africa
Answers
Answer:
white people whose families came from Dutch colonists
Explanation:
afrikaners are a South ethic group descended from 17th century Dutch, German and French settlers to South Africa
Can someone please help me with this Question from my LO task grade 12
Steps to RUN a campaign
Answers
Answer:
Define the Victory. It's important that everyone agrees on the core goal or goals of your campaign. ...
Evaluate the Campaign Climate. ...
Chart the Course. ...
Choose Your Influence Strategy. ...
Message for Impact. ...
Manage Your Campaign.
what are the 4 main structures of the senate?
Answers
Censure.
Contested Senate Elections.
Declarations of War.
Expulsion.
Filibusters and Cloture.
Impeachment.
Investigations.
Nominations.
1. Define the human rights violation that you have chosen human trafficking
Answers
Answer:
it is the infringement of the right of a person
please help! I’ll give brainliest!
Answers
Answer:
see below
Explanation:
C
Identify and describe three types of competition and give an example of each
Answers
The types of competition in sociology are pure and limited competition, absolute and relative competition, personal and impersonal competition and creative and non-creative competition.
What is competition, and what are some examples?A rivalry occurs when two or more parties strive for a common goal that cannot be shared: one's gain is the other's loss.
Competition, like cooperation, occurs at the individual, group, and organizational levels. The personal competition includes people competing for affection, a promotion, or public office.
Thus, these are the types of Competition in Sociology.
To learn more about Competition refer:
https://brainly.com/question/26356446
#SPJ1
How did coastal geography influence the growth of eastern African
civilizations?
Answers
Answer:This human movement plays a key role in the cultural landscape of Africa. Geographers are especially interested in migration as it relates to the way goods, services, social and cultural practices, and knowledge are spread throughout the world.
The African continent has a unique place in human history. Widely believed to be the “cradle of humankind,” Africa is the only continent with fossil evidence of human beings (Homo sapiens) and their ancestors through each key stage of their evolution. These include the Australopithecines, our earliest ancestors; Homo habilis, our tool-making ancestors; and Homo erectus, a more robust and advanced relative to Homo habilis that was able to walk upright. Hope this helps
Explanation:
The Southern Leadership Conference adopted which policy in the handling of civil rights activism?
Answers
Answer:
Terms in this set (17) (Southern Christian Leadership Conference) Set out to eliminate segregation from American society and to encourage African Americans to register to vote.
why is it important to protect people whose rights have been violated ?
Answers
Answer:
Because the bible says We the People which means us.
Explanation:
Hope it Helps
For each statement determine if it is a characteristic of a lease or a purchase of a vehicle buying a vehicle leasing a vehicle.
Answers
Answer:
nobremod/nobremod nobremod/nobremod
Which advancements were made in mathematics and algebra during the Renaissance? Choose four correct answers.
□ the invention and use of zero
□ the decimal point and the fraction bar positive and negative numbers
□ symbols to represent repeated numbers
□ the use of a letter for an unknown number
□ symbols for equals, multiplication, and division
Answers
Answer:
Perhaps the most significant development of mathematics during the Renaissance was the invention of infinitesimal calculus by Newton and Leibniz, at the end of the 17th century. This refers to the study of change based around limits, differentials and integration.
Explanation:
Why is Mexico a country?
Answers
Answer:
Mexico is a country of southern North America.
Explanation:
Mexico is for Latin Americans and it is very historical
mysterious in the world that can't solve.
Answers
Jack the Ripper terrorized London. A scene from Jack The Ripper, 1959. ...
The Black Dahlia's grisly death captured headlines. ...
The Zodiac Killer taunted police with clues. ...
4 and 5. ...
JonBenet Ramsey was found dead in her family home.
Answer:
Great Pyramid of Giza, Egypt.
Hanging Gardens of Babylon.
Statue of Zeus at Olympia.
Temple of Artemis at Ephesus.
Mausoleum at Halicarnassus.
Colossus of Rhodes.
Lighthouse of Alexandria.
Explanation:
i hope this helped you
Comparing the costs in time and resources with the benefits is an important step in
implementing a program that has become law
reducing funding from a local or state budget
deciding whether to add a new public official
analyzing the effectiveness of a public policy
Answers
The comparison of costs in time and benefits from the resources is considered an important step in reducing funding by preparing a local or state budget.
What is a budget?A budget is a forecasted plan of revenues and expenses. There are various types of budgets like master budget, material budget, expenses budget, etc.
Budgeting is the process that helps the government to reduce its spending and minimize costs with the creation of revenues. A budget enables them to identify where to spend more and where to spend less. It also helps in analyzing where to save money. It helps the government to allocate the funds in the right direction which could reduce the funding and increase the revenues.
Therefore, the reduction in funds can be done by having a planned budget which is an important step in comparing costs and having benefits.
Learn more about the budgeting in the related link:
https://brainly.com/question/18803390
#SPJ1
Answer:
Reducing funding from a local or state budget
Explanation:
what is not attribute of economy indication
Answers
Answer:
An economy indication is an economic statistic, such as the unemployment rate, GDP, or the inflation rate, which indicate how well the economy is doing and how well the economy is going to do in the future.
Key takeaways:
An economic indicator is a macroeconomic measurement used by analysts to understand current and future economic activity and opportunity.
The most widely-used economic indicators come from data released by the government and non-profit organizations or universities.
Indicators can be leading—which tend to precede trends, lagging—which confirm trends, or coincident—that which is happening now.
So, think about what isn't important information. What data don't you need? Do you need to know the avg income of the city or state etc.? The population? The percent of female or male? Birthrate? Think about it
I hope this helped
Wind is a renewable energy resource and there are no fuel costs.
T OR F
NO LINKS
Answers
Answer:
I think it's T
because it's a renewable energy resources indeed.
How can knowing the opportunity cost help you make a better decision
Answers
Answer:
Explanation:
With the opportunity cost, you will consider the fact that when you make a choice, you have to sacrifice other options. This helps make more economically accurate decisions that maximize your resources.
How do political candidates get their message
out?
Answers
Answer:
political candidates get their message out through campaigns
How did Governor Talmadge support white supremacy?
A. He was a member of the KKK.
B. He was a civil rights advocate.
C. He promoted racial segregation.
D. He opposed school segregation.
Answers
Answer:
d. he opposed school segregation
Explanation:
17) Prior to the Industrial Revolution, industry was
A) clustered.
B) concentrated.
C) dispersed.
D) randomly distributed.
E) located in colonies.
Answers
Which of the following countries is least likely to hold free and legitimate elections by its citizens, based on this map?
Mexico
Belarus
Tanzania
Columbia
Answers
Belarus is least likely to hold free and legitimate elections by its citizens, based on this map.
What is Belarus?Eastern European country of Belarus, officially known as the Republic of Belarus, is a landlocked country.
In the northwest, it borders Lithuania and Latvia; in the south, Ukraine; in the west, Poland; and in the east and northeast, Russia.
Belarus is the 20th-most populous and 13th-largest country in Europe, with a population of 9.3 million and an area of 207,600 square kilometers (80,200 square miles).
The entire country is divided into seven administrative regions. Minsk is the nation's capital and largest city.
What is Election?A formal process of communal decision-making, an election is how a population choose a person or people to hold public office.
Since the 17th century, elections have been the primary method used to carry out representative democracy in modern times.
Elections may be held to fill legislative, occasionally executive, occasionally judicial, and occasionally regional and municipal positions.
Numerous other private and commercial organizations, including clubs, nonprofit organizations, and corporations, also use this procedure.
Hence, option B is correct.
To learn more about Belarus here
https://brainly.com/question/1827448
#SPJ2
Which of the following is not an important use of writing?
A) It allows information to be passed from generation to generation.
B) It allows information to be spread across great distances.
C) It enables people to read literature.
D) It helps people to speak more clearly.
Answers
Answer:
A) It allows information to be passed from generation to generation.
if it is not the second one it could be it
D) It helps people to speak more clearly.
Hope this Helps
What was one good thing to come out of the Articles of Confederation?
Select one:
a. The Northwest Ordinance of 1787.
b. The ability to raise and maintain an army.
c. The creation of a Presidency.
d. The creation of a federal court system.
Answers
Answer:
B.) The ability to raise and maintain an army.
The primary advantage that the Articles of Confederation provided was its ability to maintain the independence and sovereignty of each state within the union. The states could use these articles to band together to send ambassadors to other nations overseas, and handle territory issues
Explanation:
Have a great rest of your day
#TheWizzer
What is society ? why do we need it ?
Answers
a particular community of people who share the same customs , laws etc
Answer:
Explanation:
Society is the world around us. If we didn't have a society, we'd be all on own and somewhat useless. We need society for living and breathing. You need people to be around. You need people to work for, help you, etc. Society might seem very bad atm, but it will slowly get better.
- brainlist
What is the benefit in reaching the absolute advantage in the production of one good?
to produce more units of a good than other countries
• to produce fewer units of a good than other countries
® to produce more units of a good while usina fewer resources
® to produce fewer units of a good while using fewer resources
Answers
® to produce more units of a good while using fewer resources
“The right of citizens of the United States, who are eighteen years of age or older, to vote shall not be denied or abridged by the United States or by any State on account of age.”
Which of the following reflects the source and impact of this quote?
A. The 19th amendment protects the right to vote for all legal adults. Before this amendment, voters had to not only be an adult but also serve in the armed forces and be a high school graduate before they could vote.
B. The 26th amendment protects the right to vote for all legal adults. Before this amendment, young adults could be in college or even serving the military in combat but not be eligible to choose their leaders for a few years.
C. The 19th amendment prevents states from allowing minors to vote. Before this amendment, widespread voter fraud was an issue throughout the states, as parents would vote multiple times using their children's names.
D. The 26th amendment prevents states from allowing minors to vote. Before this amendment, candidates directed their campaigns at children and teens through cartoons rather than focusing on real political issues.
Answers
Answer:
D
Explanation:
D. The 26th amendment prevents states from allowing minors to vote. Before this amendment, candidates directed their campaigns at children and teens through cartoons rather than focusing on real political issues.
my mind suddenly went blank
Answers
Answer:
You can write some goals you have for this year? I don't think anyone can answer these questions but you
Explanation:
Suppose Robina Bank receives a deposit of $54,589 and the reserve requirement is 6%. Answer the questions using this information. Round your answers to two decimal places.
What is the amount that Robina Bank must keep on hand as required by the Federal Reserve (Fed)?
keep on hand: $__________
What is the amount that Robina Bank must have in excess reserves from this initial deposit?
excess reserves: $__________
What is the total change in the M1 money supply from this one deposit?
total change: $__________
Answers
1. Reserve requirement is 6% of $54,589 => $3,275.34
required reserves= initial deposit× reserve requirement
2. Excess reserve = Initial deposit - required reserve
excess reserves=$54,589−$3,275.34=$51,313.66
This is available for providing loans by bank.
3. Money multiplier = 1 / reserve requirement
Change in money supply = Money multiplier x excess reserves
change in M1=(1 / 0.06)×$51,313.66=$855,227.67
So as you can see, the excess reserves of $51,313.66 from one initial deposit of $54,589 generate a total change in the M1 money supply of $855,227.67 after multiple rounds of lending.
In this unit, you studied human personality. One of the things you had to consider is the role human difference plays in the development of personality. However, you also had to consider the role of similarity in determining and theorizing about personality. Now, write a 250-word essay in which you argue whether or not you feel it is more important that researchers focus on individual difference or individual similarity in their study of personality development.
Answers
The purpose of the question is to write an essay that discusses your position on individual similarities and differences in the study of personality development.
How to write an argumentative essay?It is essential that students build their ideas for or against a particular topic by conducting research in reliable sources, such as books and scientific articles. The search for resolving possible counter-arguments should also be considered.
Therefore, you can base your argument on the theories of leading authors on the subject, such as Freud and Erik Erikson to generate greater acceptance and reliability of your argument.
Find out more about argumentative essay here:
https://brainly.com/question/22740197
Which profession gets paid with tax money?
A) public school teachers
B) bankers
C) lawyers
Answers
Answer:
A.
Explanation:
They are doing a public job for that county.
Answer:
a) public school teachers
Explanation:
public school teachers are paid with tax money because they are 'public servants' and the government pays them to directly serve the community.