What kinds of monetary policy

Assignment Help Macroeconomics
Reference no: EM133685865

PROMPT: 1) What kinds of Monetary policy(easy or tight) should be exercised under the recessionary gap? Give examples of policy tools in terms of RRR(Required Reserve Ratio), DR(Discount rate) and OMP(open market policy) 2) Explain the" MONEY MULTIPLIER" of money creation including the formula and the process. 3) Compare discount rate, federal fund rate, prime(lending) rate and deposit rate. 4) Discuss the relationship between Bond price and interest rate. 5) if RRR(Required Reserve Ratio) is larger, is the Money Multiplier bigger or smaller? why? explain based on the formula.

Reference no: EM133685865

Questions Cloud

Calculate adjusted net income that the company should report : Calculate the adjusted net income that the company should report for the year ended December 31, 2021. By what dollar amount did the adjustments in requirement
What impact does this have on measures of gdp : Are nations with large underground economies likely to be happier or unhappier than expected based on their given MEASURED levels of real per capita GDP
What is the sub- and sub-category : For the basic cause statement BC: Bill was not trained on the appropriate procedures for pipe maintenance activities, what is the sub- and sub-category?
Which practices would be recommended : You are only 25 years old and want to be sure that you are targeting your messages effectively. Which practices would be recommended?
What kinds of monetary policy : What kinds of Monetary policy(easy or tight) should be exercised under the recessionary gap? Give examples of policy tools in terms of RRR
What type of conflict has the it departmentexperienced : The members of the IT department have spent two days debating the best approach to roll out. What type of conflict has the IT departmentexperienced?
What level of diction is exemplified : What level of diction is exemplified in the sentence from President Johnson's speech? The challenge of the next half century
Why is it important to conduct job analysis : Why is it important to conduct a job analysis? List four to five key components of a job analysis and why these components are important for job documentation
Understand the dasam granth as a whole : Robin Rinehart sets these issues aside. How does Rinehart suggest one might understand the Dasam Granth as a whole

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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