15):- A is right option
When the Fed purchases $1000 worth of government bonds from the public, the U.S. money supply eventually increases by more than $1000
The Federal Reserve is defined asU.S. Central Bank; it Purpose to control the supply of credit and money to achieve stable prices provide, full employment, and make economy growth.
13):-D is right option
The Federal Reserve is defined as
U.S. Central Bank builded in 1913 it Purpose to control the supply of credit and money to achieve stable prices provide, full employment, and make economy growth.
5) :-c is right option
Make it less likely that the Eye of Horus will build the factory because the opportunity cost of the $10 million is now higher.
Opportunity Cost is cost that occure in making a decision the value of the best alternative is lost. e.g. choosing electricity over gas, the opportunity cost is what you've lost from not picking gas. Firms take decision about what economic activity they want to be involved in.
Governments also have to make this important choice like deciding to devote more resources to the NHS would mean that those resources weren't spent in other sectors like defense. Economic analysis helps explain how choices are made and how they could be improved
Sorry for fourth one i tried hard button couldn't found right option sorry
d. None of the above is correct. QUESTION 15 1 points When the Federal Reserve, or...
Which of the following statements is positive? Group of answer choices When the Federal Reserve increases the money supply, interest rates decrease. Large budget deficits should be avoided. A tax cut that benefits low-income households is acceptable. Higher taxes are needed to support education. The standard of living in an economy is best measured by: Group of answer choices output per person. average labor productivity. total output. the inflation rate. If average labor productivity increases while population and the number...
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you answer question 15 & 16
QUESTION 15 Suppose that the Federal Reserve believes the economy is growing too fast and engages in contractionary monetary policy. What happens to the money supply and interest rates in the money market? A. The money supply increases and interest rates fall. B. The money supply increases and interest rates rise. C. The money supply decreases and interest rates fall. D. The money supply decreases and interest rates rise. QUESTION 16 Suppose the...
1. To reduce the money supply, the Federal Reserve: a) buys government bonds. b) sells government bonds. c) creates demand deposits. d) destroys demand deposits. 2. If the reserve-deposit ratio is less than one, and the monetary base increases by $1 million, then the money supply will a) increase by $1 million. b) decrease by $1 million. c) increase by more than $1 million d) decrease by more than $1 million. 3. When people want to hold _____ money, the...
Question 17 When the Federal Reserve purchases a Treasury security on the open market, the money supply and the federal funds rate increases, increases increases, decreases decreases, increases decreases, decreases
The Federal Reserve conducts monetary policy with a variety of goals in mind. Increasing the money supply can help spur investment and boost production in the economy, and the most common ways of increasing the money supply are buying bonds off of the open market, or lowering the discount rate, making it cheaper to borrow for investment. However, doing this comes at a cost of inflation, because there are more dollars chasing goods than before. Recently, the Federal Reserve has...
1. Suppose that a corporation has $5 million in cash that it was planning to use to build a new factory. Recently, the real interest rate has decreased. The decrease in the rate of interest should A. not influence the decision to build the factory because the corporation doesn’t have to borrow any money. B. not influence the decision to build the factory because its stockholders are expecting a new factory. C. not influence the decision to build the factory...
1.What could the Federal Reserve have done to fight the Great Depression? a.Increase the money supply to reduce the interest rate. b.Increase the money supply to raise the interest rate. c.Decrease the money supply to reduce the interest rate. d.Decrease the money supply to raise the interest rate. 2. How could the government have used fiscal policy to fight the Great Depression? a.Reduce taxes, raise transfers, raise government purchases. b.Reduce taxes, reduce transfers, reduce government purchases. c.Raise taxes, reduce transfers,...
QUESTION 53 6.66 points Save Answer Which of the following is not a determinant of the long-run level of real GDP? O a. available stock of human capital. O b. available technology O c. the price level. O d. the amount of capital used by firms. QUESTION 54 6.66 points Save Answer When households find themselves holding too much money, they respond by O a. purchasing interest-earning financial assets and interest rates fall. O b. holding the extra money and...
11. (4 points) Assume that the currency-deposit ratio is 0.2. The Federal Reserve carries out open-market operations, purchasing $1 million worth of bonds from banks. This action increased the money supply by $2 million. Suppose this economy has $10 million of total reserves after the open market operations. (1) The money multiplier is (2) The reserve-deposit ratio is (3) The amount of currency after the open market operation is $_ (4) The amount of money supply after the open market...
1.) Which interest rate is targeted by the Federal Reserve? Question 11 options: Discount rate Prime rate Federal funds rate Student loan rate 2.) When the federal reserve wishes to increase the interest rate, it sells bonds on the open market buys bonds on the open market increases taxes decreases taxes