How can the fed reduce a continuing inflation

Assignment Help Microeconomics
Reference no: EM131774553

Question: 1. How can the Fed reduce a continuing inflation?

a) by increasing the money supply growth rate

b) by decreasing the required reserve ratio

c) by buying government bonds from commercial banks.t of the aggregate demand curve

d) by slowing the continuing leftward shift of the aggregate demand curve

e) by decreasing the money supply growth rate

2. If there is a sudden increase in government spending, which of the following should the Fed do if it wants to keep the price level steady?

a) buy bonds in the open market

b) do nothing, since the self-correcting mechanism will adjust the economy

c) sell bonds in the open market d)decrease the required reserve ratio

e) wait, since the price level usually does not change when government spending increases

3. he AD curve shifts to the right when

a) the Fed lowers interest rates

b) the Fed raises interest rates

c) the Fed lowers its spending

d) the Fed increases its spending

4. The U.S. inflation rate

a) was the most serious economic problem from 2005 - 2015

b) grew rapidly after 2000

c) has been stable since 1965

d) fell significantly after 2008

5. If there is a sudden increase in government spending, which of the following should the Fed do if it wants to keep the price level steady?

a) buy bonds in the open market

b) do nothing, since the self-correcting mechanism will adjust the economy

c) sell bonds in the open market

d) decrease the required reserve ratio

e) wait, since the price level usually does not change when government spending increases

Reference no: EM131774553

Questions Cloud

What is the net present value of this investment opportunity : What is the net present value of this investment opportunity, should Axillar go ahead with the new conditioning shampoo
Explain the deficiencies in allison report as drafted : Optima does not wish to present a statement of cash flows for either year. Explain the deficiencies in Allison's report as drafted. (AICPA Adapted)
Cover the cost of the to upgrade at the current volume : If it turned out that change in margin was not sufficient to cover the cost of the to upgrade at the current volume,
Calculation for the present value of the principal : Compute the total price paid by simpson inc. for the bonds showing your calculation for the present value of the principal and the present value
How can the fed reduce a continuing inflation : How can the Fed reduce a continuing inflation? a) by increasing the money supply growth rate b) by decreasing the required reserve ratio.
The manager of distribution in european country : You are a U.S. citizen recently assigned as the manager of distribution in a European country where bribery is relatively accepted.
Calculate gain or loss on the sale : Accumulated Depreciation as of December 31, 2018 was $31,000. Calculate gain or loss on the sale.
What is the adjustment at the end of the accounting period : Dr pays $3700 in weekly salaries on Fridays for a five day week ending on that day. What is the adjustment at the end of the accounting period ends on Wednesday
Find the costs of holding inventory : In reality, it can be difficult to find the costs of holding inventory. Why is this so? How can these difficulties be overcome?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd