Determine what is the velocity of money

Assignment Help Microeconomics

Reference no: EM13223614

1. List three main tools available to the Fed to change the money supply in the economy.

Which tool do you think is most commonly used?

If the Fed wanted to decrease the supply of money in the economy, would the Fed buy or sell securities in the open market and what would be the first effect of this policy.

2.. Assume GDP is currently $5,600 billion per year and the quantity of money is $800 billion. What is the velocity of money? The nation collectively holds enough money to finance how many days worth of GDP expenditures?

Reference no: EM13223614

Questions Cloud

Human development theory : Human development theory and research findings are particularly relevant to everyday life.

American psychological association : How can American Psychological Association can contribute towards increasing professional knowledge and abilities.

What is the present value of the firm at the discount rate : A firm is expected to earn $10,000 one year from today, $25,000 two years from today, $48,000 three years from today, and $75,000 four years from today, after which it will be dissolved. What is the present value of the firm if the discount rate i..

Basic steps in the collection process : The script must provide an overview of how to use the flow chart when dealing with a collections account. Include details about what to do at each step in the flow chart. The audience for the job aid and video is a medical office billing trainee

Determine what is the velocity of money : Which tool do you think is most commonly used If the Fed wanted to decrease the supply of money in the economy, would the Fed buy or sell securities in the open market and what would be the first effect of this policy.

What is the salvage value of each alternative : Three assets are being considered. Assets A, B and C have natural lives of 4, 5 and 6 years and costs of $12,000, $20,000 and $30,000 respectively. There will be no salvage value at the end of each assets life. market value decreases in a straight..

Models of physical security : Describe the three models of physical security as they apply to this particular environment. Summarize the environment’s strengths and weaknesses within each model.

Contrast of core and enabling technologies : Submit a comparison and contrast of core and enabling technologies in two separate organizations within the same industry

Features of the browsers : Explaining your reasoning in how features of the browsers are similar to and different than your usual browser. With what features are you unfamiliar? Are there advantages or disadvantages to using this browser?

User Account

All Pages