« previous next »

Author Question: Assume the central bank decides to pursue contractionary monetary policy. Where and how should you ... (Read 66 times)

Brittanyd9008

  • Hero Member
  • *****
  • Posts: 500
on: Jun 30, 2018
Assume the central bank decides to pursue contractionary monetary policy. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
 a. Start the analysis in the real goods market with aggregate demand shifting to the left.
  b. Start the analysis in the real goods market with aggregate demand shifting to the right.
  c. Start the analysis in the real credit market with demand for real credit shifting to the left.
  d. Start the analysis in the real credit market with demand for real credit shifting to the right.
  e. Start the analysis in the real credit market with supply of real credit shifting to the left.

Question 2

To calculate the monetary base, one must:
 a. Add currency held both inside financial institutions and outside financial institutions to deposits at the central bank.
  b. Subtract currency in circulation from financial institutions' reserves.
  c. Sum all financial institutions' reserves, because financial institutions' reserves and the monetary base are two terms meaning the same thing.
  d. Subtract from financial institutions' reserves all deposits held with the central bank.
  e. None of the above.


macmac

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 30, 2018
Answer to Question 1

.E

Answer to Question 2

.A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

The circulatory system plays a central role in thermoregulation by the moth, Manduca sexta The circulatory system plays a central role in thermoregulation by the moth, Manduca sexta
Orientation of the Central Engine and Its Jets Orientation of the Central Engine and Its Jets
Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo
Number and label designations for oxygen sensors. Bank 1 is the bank where cylinder number 1 is ... Number and label designations for oxygen sensors. Bank 1 is the bank where cylinder number 1 is ...
Assume z is a standard normal random variable. What is the value of z if the area to the right ... Assume z is a standard normal random variable. What is the value of z if the area to the right ...
The executive legislative "struggle" over foreign policy The executive legislative "struggle" over foreign policy
Video: baroreceptors

For a complete list of videos, visit our video library