This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose individuals expect that interest rates will increase in the future. Also assume that the Fed ... (Read 137 times)

Zoey63294

  • Hero Member
  • *****
  • Posts: 539
on: Jun 30, 2018
Suppose individuals expect that interest rates will increase in the future. Also assume that the Fed wants to prevent any change in current output. Given this goal of the Fed, the Fed should implement a policy in the current period that
 
  A) shifts the IS curve rightward.
  B) shifts the IS curve leftward.
  C) shifts the IS curve leftward and the LM curve upward.
  D) shifts the LM curve upward.
  E) shifts the LM curve downward.

Question 2

Holding large amounts of bank capital helps prevent bank failures because
 
  A) it means that the bank has a higher income.
  B) it makes loans easier to sell.
  C) it can be used to absorb the losses resulting from bad loans.
  D) it makes it easier to call in loans.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

alexisweber49

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jun 30, 2018
Answer to Question 1

E

Answer to Question 2

C


Zoey63294

  • Member
  • Posts: 539
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

fatboyy09

  • Member
  • Posts: 358
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Analysis of intial rates Analysis of intial rates
Although the highest rates of disordered eating patterns occur among females, males are not immune Although the highest rates of disordered eating patterns occur among females, males are not immune
For toluene (shown below), you would expect to see which m/z fragment in the mass spectrum? For toluene (shown below), you would expect to see which m/z fragment in the mass spectrum?
Determine the nominal annual rate of interest of the following ordinary general annuity. Determine the nominal annual rate of interest of the following ordinary general annuity.
An archaeological sample contains 0.700 g of lead-206 and 2.144 g of uranium-238. Assume that ... An archaeological sample contains 0.700 g of lead-206 and 2.144 g of uranium-238. Assume that ...
Sources of Variation in Traits Among Individuals of a Species Sources of Variation in Traits Among Individuals of a Species
Video: Buffers definition and the role of buffer in the body

For a complete list of videos, visit our video library