When the fed uses expansionary monetary policy

Assignment Help Business Economics

Reference no: EM131099009

When the Fed uses expansionary monetary policy, which of the following is true?

a. Consumer spending and autonomous government spending increase while investment spending decreases.

b. Consumer spending, investment spending, and autonomous government spending decrease

c.Interest sensitive consumer spending, investment spending, and autonomous government spending increase

d. Interest sensitive consumer spending, investment spending, and autonomous government spending increase while net exports decreases due to the change in the value of the dollar

e. Interest sensitive consumer spending, investment spending, and autonomous government spending decrease while net exports increases due to the change in the price level.

Reference no: EM131099009

Questions Cloud

Determine the proportion of their charge accounts : The Independent Department Store wants to determine the proportion of their charge accounts that have an unpaid balance of $1,500 or more. A sample of 250 accounts revealed that 100 of them had an unpaid balance of $1,500 or more. What is the 99 perc..

Consider model of three-period-lived individuals : Consider a model of three-period – lived individuals. Suppose the two-period real rate of return on capital is X = 1. 44, the rate of population growth is n = 1. 1, and the rate of fiat money creation is z = 1. 2. Find the following net rate for both..

Job description of a certified public accountant : Write the answer as a discussion post. What is the job description of a Certified Public Accountant?

What is difference between private ownership and open access : Suppose you are considering buying a gold deposit. It will cost $1 million per year to construct a mine so that gold can be extracted. The construction period lasts 3 years. In the fourth year, production starts. What is the difference between privat..

When the fed uses expansionary monetary policy : When the Fed uses expansionary monetary policy, Consumer spending and autonomous government spending increase while investment spending decreases. Consumer spending, investment spending, and autonomous government spending decrease.

The economy short-run and long-run phillips curves : Suppose the economy is in long-run equilibrium. (a) Draw the economy’s short-run and long-run Phillips curves. (b) Suppose a wave of business pessimism reduces aggregate demand. Show the effect of this shock on your diagram from part (a).

Determine the yield on a australian treasury bond : Create a spreadsheet to determine the yield on a 35-year Australian Treasury bond with a face value of $1 000 000. Inputs to the spreadsheet (used on this sheet and the others following) are coupon rate of the SM bond, the price paid by a consumer

Calculate contribution margin ratio at the projected levels : You are pitching a marketing proposal to a company that sells electronic equipment. For a particular product line, their current sales price is $20 per unit, cost is $9 per unit and they have $20,000 in fixed costs associated with this line. Calculat..

Should the state of texas implement term limits : Should the State of Texas implement term limits for our members of the appointed boards and committees, since most boards and committees handle the day-to-day operations of state government? Why?

User Account

All Pages