Lower volatility in both money supply growth and inflation

Assignment Help Microeconomics

Reference no: EM13692444

1) Both theory and experience suggest that (fill in the blank) leads to lower volatility in both money supply growth and inflation.

a. having no central bank

b. having a central bank with a low degree of independence

c. having a central bank with a high degree of independence

d. having a central bank whose governors are elected by popular vote

2) You purchase computer software from a company in Chicago, Illinois those banks with Wells Fargo. You write a check on your Bank of America account in Tallahassee, Florida for $175.00 to pay for the transaction. Which statement below is accurate with regard to the impact on both banks' balance sheets?

a. Wells Fargo gains $175 in deposits and cash; Bank of America loses $175 in deposits and cash.

b. Wells Fargo gains $175 in deposits and reserves; Bank of America loses $175 in deposits and reserves.

c. Wells Fargo loses $175 in deposits and reserves; Bank of America gains $175 in deposits and reserves.

d. Wells Fargo gains $175 in deposits and loses $175 in reserves; Bank of America loses $175 in deposits and gains $175 in reserves.

e. Since the transaction is for $175 for each bank, there is no change in deposits or reserves.

Reference no: EM13692444

Questions Cloud

Find the optimal allocation over two periods : a) Suppose P = 100 – q, Cost = 20q, and the resource constraint is Q = 80. Find the optimal allocation over two periods. What is the value of the resource? Suppose I impose a tax of 10$ per unit extracted. What happens to the allocation in (a)

Calculate change in banks profits if interest rates falls : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

Find real wage-employment-output and unemployment : Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . Where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2. The turnover cost per labor is (0.36)/(w/p)

Lower volatility in both money supply growth and inflation : Both theory and experience suggest that (fill in the blank) leads to lower volatility in both money supply growth and inflation. You purchase computer software from a company in Chicago, Illinois those banks with Wells Fargo. You write a check on yo..

Find their sample correlation coefficients to confirm : A government researcher examines the factors that influence a city's crime rate. For 41 cities, she collects the crime rate (crimes per 100,000 residents), the poverty rate (in %), the median income (in $1,000s), the percent of residents younger than..

Difference and distinct uses of taxes within our economy : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

Discuss the governments use of incentives : Explain the role of incentives in the market and discuss the government’s use of incentives.

User Account

All Pages