Macroeconomics help please!!?
a. Monetary policy would have little effect.
b. Monetary policy would have a very large effect.
c. Monetary policy would only work in an open economy.
d. Monetary policy would involve more lags than fiscal policy.
Which of the following is a contractionary monetary policy?
a. an increase in taxes.
b. a decrease in the reserve requirement.
c. a decrease in government spending.
d. an open market sale of bonds.
How does an increase in the money supply affect the exchange rate?
a. Since interest rates increase, foreign citizens will be less likely to want to buy U.S. financial assets, and the dollar depreciates.
b. Since interest rates increase, foreign citizens will be more likely to want to buy U.S. financial assets, and the dollar appreciates.
c. Since interest rates decrease, foreign citizens will be less likely to want to buy U.S. financial assets, and the dollar depreciates.
d. Since interest rates decrease, foreign citizens will be more likely to want to buy U.S. financial assets, and the dollar appreciates.
Answer:
I will answer the questions from an economic standpoint:
1 - a.
Monetary policy's goal is to change the interest rate in the hopes of affecting GDP through investment. When the interest rate is higher, there is less investment, and when the interest rate is lower, there is more investment; it is an inverse relationship. If investors are not very sensitive to interest rate changes, then spending resources trying to change the interest rate through monetary policy is less effective and thus less efficient.
2 - d.
When banks engage in buying and selling of the open market bonds, it is known as "open-market operations." Similar to government spending, when banks buy bonds on the open market, it is an expansionary policy, while selling bonds on the open market is an contractionary policy.
3 - d.
First of all, increasing the money supply will lower the interest rate, and in theory this will raise investment. The international results of monetary policy are often difficult to predict, however, theoretically, investment as a whole increases not only domestically, but internationally as well, and so the dollar should appreciate.
The real world answer to the first problem is:
E. The Conservatives will escape into the feudal courts to negate the effects of all economic virtue and opinion thus leaving the "investor" a trivial matter, as one can always count on ones enemies to invest in our nation in a negative way, as the British did prior to the War of 1812, so as to cripple the nation's industrial capacity whilst "making the conservatives look so good that politically they can be lazy and take the easy way out."
Secondly, the only relevant answer is also E. The conservatives use lies and lies to cover up mass murder by court action by jailing at forced labor millions, and shooting many more with the intention of leaving only conservatives left alive. They call this "The Child Protection Act". And they insist that those cases held up to public scrutiny are those they choose to permit discussed, by sequestering the jailed without phone calls ever (phone calls are only required in criminal matters like jailing people without a trial if caught but if your not caught it's a "civil matter"). They do this as children get upset when they know a feuding judge is systematically murdering his / her whole family for personal gain without due cause other than the personal greed of the court, and without due process, such as a jury trial. This upsetting of children is deemed "harm-full to a child's psyche". The "legal finding" that permits this in the twisted logic of what passes for conservative thought is that "as felons resisting arrest they can be shot" and the "liberal is a felon as he is asking for taxes to be redistributed which is against Constitutional Law. And the Liberal is resisting arrest, as prosecution is "part and parcel of arrest" and the Liberals so out number the "true conservative". (most conservatives being held by the court as stupid liberals who don't know true Conservative Philosophy is utterly self destructive to the point of being a form of national suicide) And thus even self identifying conservatives are likely to vote not guilty when or if a charge of treason or attempted grand theft were levied against Grandpa Jones for asking Social Security to look after little Nell, after the Bomb Plant caused her to grow four legs and two retarded heads. In the end though, as per the first question, the court makes "secret" findings (secret as it's a sting operation designed to catch liberals with their felonious hands out) This finding is that redistribution of wealth by taxation is unconstitutional and thus the court's secret "stance" is that we all must therefore borrow the money from our enemies, as this is the only legal thing to do. We can't let the liberals steal, or walk away from theft on such a large scale. Thus we must hide what we are doing or they will "figure out they are caught". But We can't as a nation continue to tax for redistribution of wealth. But if the liberals would toss conservatives out of the court if they knew the jig was up, before sufficient "honest conservative foreigners" could be given citizenship so as to be able to replace the "cheating" liberals. So, they need to borrow the money from the Communist Chinese, etc. to run the nations "entitlements" which would otherwise be funded illegally by taxation. All said, this on paper expands the economy. But this is only a reflection of the large influx of foreign capitol and ignores an utter loss of industrial and agricultural capacity; it is a bubble. It is proof that the argument is made tongue in cheek by narcho terrorists, the conservatives, in response to technology that caught them in the act and thus forced a civil war, which they could only win, as that business was always such a better financed form of government than the "government".
Final question: D, as other governments go shopping for bargain basement slaves, you and me and all of us, they compete for the prise.
The answers post by the user, for information only, FunQA.com does not guarantee the right.
More Questions and Answers: