Reference no: EM131046032
1. Quantity Theory of Money
What three motives for holding money did Keynes consider in his liquidity preference theory of the demand for real money balances? Briefly explain. On the basis of these motives, what variables did he think determined the demand for money?
2. Financial Institutions and the Central Bank
Briefly explain the structure of the Fed in achieving the balance of power between the public sector and the private sector. Briefly explain the 3 tools used by the Fed to conduct monetary policy. How did the Fed use these tools during the Great Depression? What can you say about bank failure during the Great Depression?
3. Financial Institutions and the Central Bank
Compare and contrast the independence of the Federal Reserve (Fed) against independence of the European Central Bank (ECB). Briefly explain how each factor leads to the independence of the central bank (i.e. provide at least six factors). Which central bank is the most independence central bank? Why?
4. Financial Institutions and the Central Bank
Briefly explain the structure of the Fed in achieving the balance of power between the public sector and the private sector. Briefly explain the 3 tools used by the Fed to conduct monetary policy. How did the Fed use these tools during the Great Depression? What can you say about bank failure during the Great Depression?
5. Factors affecting the expanded money multiplier and the money supply.
Briefly explain each of the five (5) affecting the money multiplier and the money supply. Provide one example of each factor to support your analysis. Compare the simple money multiplier to the expanded money multiplier. What are the two critics against the simple money multiplier?
6. Factors affecting the expanded money multiplier and the money supply.
Briefly explain the behavior of each of the 5 factors affecting the money multiplier during the Great Depression. How was the money supply affected by each of the 5 factors during the Great Depression? Explain and provide three examples to support your analysis.
7. Quantity Theory of Money
There are 7 factors that can affect empirically the demand for money. Briefly explain how each factor impact the demand for money and provide one example of each factor.
8. Demand for Money
Briefly explain Keynes's three motives for money demand. Why does Keynes's view of the demand of money suggests that velocity is unpredictable? Compare the Keynesian view of velocity to the Classical view of velocity. Explain and provide one example to support your analysis.