Reference no: EM131118608
At the end of the third quarter of 2015, the money supply in the U.S. was $2 trillion. That is, the available currency and deposits in the U.S. during July, August, and September 2015 was two trillion dollars. Also, during the third quarter of 2015, U.S. nominal GDP was $16 trillion and U.S. real GDP was $13 trillion.
During the third quarter of 2015, which of the answer choices gives the best approximation of the maximum number of times that a given dollar bill was exchanged during legal transactions?
A. More information is needed; specifically, the price level must be known.
B. Six and a half times
C. Eight times
D. Sixteen times
Monetary Neutrality is a theory in macroeconomics that states when the central bank conducts monetary policy, the central bank does not affect the real economy (e.g., the number jobs, the size and growth of output, the amount of investment). Instead, any change in the money supply would be offset by a proportional change in prices and wages. Monetary neutrality underlies the quantity theory of money. Suppose that throughout the fourth quarter of 2015, the Federal Reserve enacted a bond buying program. If monetary neutrality holds, then which of the answer choices is correct?
A. During the fourth quarter of 2015, the Fed conducted a contractionary monetary policy. From the third quarter to the fourth quarter, U.S. money supply decreased, and U.S. nominal GDP decreased.
B. During the fourth quarter of 2015, the Fed conducted a contractionary monetary policy. From the third quarter to the fourth quarter, U.S. money supply decreased, and U.S. nominal GDP was unchanged since it is not affected by changes in monetary policy.
C. During the fourth quarter of 2015, the Fed conducted an expansionary monetary policy. From the third quarter to the fourth quarter, U.S. money supply increased, and U.S. nominal GDP increased.
D. During the fourth quarter of 2015, the Fed conducted an expansionary monetary policy. From the third quarter to the fourth quarter, U.S. money supply increased, and U.S. nominal GDP was unchanged since it is not affected by changes in monetary policy.
Observational methodologies for market research
: In 200+ words, what is an example of an ethical dilemma in marketing research? What role does ethics play in relation to market researchers using observational methodologies for market research?
|
How does tes change or reinforce earlier court decisions
: Major changes to the disciplinary regulations came with the reauthorization of IDEA in 2004. Discuss what the changes were. How does this change or reinforce earlier court decisions?
|
Company in a competitive market
: Research a well-known company. In a well-written paper, assess the situation facing your chosen company in a competitive market.
|
What is the value of the resistor
: What is the value of the resistor?
|
Dollar bill was exchanged during legal transactions
: At the end of the third quarter of 2015, the money supply in the U.S. was $2 trillion. That is, the available currency and deposits in the U.S. during July, August, and September 2015 was two trillion dollars. During the third quarter of 2015, which ..
|
Current marketing campaign
: Go to http://fortune.com/fortune500/ Select one company from the Fortune 500 list & review their current marketing campaign; Analyze whether or not the market approach is customer driven and explain your reasoning
|
Primarily china and other asian countries
: Why did the U.S. lose this industry to other, less developed countries, primarily China and other Asian countries? When did this happen? Was it primarily because of cheap labor rates?
|
How are the disciplinary techniques used for children
: How are the disciplinary techniques used for children with special needs different from the techniques used in the typical classroom?
|
Reflecting an oversupply of sugar on global markets
: In November, sugar prices decreased 1% to 16.26 U.S. cents a pound. Sugar prices are down almost 17% so far this year, reflecting an oversupply of sugar on global markets. Brazil is the world’s largest sugar supplier, producing approximately 35 milli..
|