Tight money policy

Assignment Help Business Economics
Reference no: EM13819113

Tight (contractionary) money policy

A. can be done by raising taxes

B. generally creates new jobs

C. lowers demand for spending

 

D. increases excess reserves

Reference no: EM13819113

Questions Cloud

Calculate the real-world multiplier : Consider again an economy with the usual required reserve ratio (rr); economy-wide checking (demand deposits) of $400,000; total cash within banks of $100,000; cash held by the public of $36,000; and er = 0.16. Calculate the "real-world" multiplier.
Calculate the naive multiplier : Consider an economy with the usual required reserve ratio (rr); economy-wide checking (demand deposits) of $400,000; total cash within banks of $100,000; cash held by the public of $36,000; and er = 0.16. Calculate the "naive" multiplier. We will use..
Monetary policy tools used by the federal reserve : Monetary policy tools used by the Federal Reserve (Fed) today do NOT include
Calculate the maximum amount of new money : For the next two questions we will consider Rimor Bank, which has the following (partial) list of accounts on its balance sheet: Calculate the maximum amount of new money that Rimor Bank can create, by itself.
Tight money policy : Tight (contractionary) money policy
Calculate banks excess reserves : This is the last question dealing with Sante Bank, which has the following (partial) list of accounts on its balance sheet: Calculate Sante Bank's excess reserves.
List of accounts on its balance sheet : For the next three questions we will consider Sante Bank, which has the following (partial) list of accounts on its balance sheet:
Statements uses economic vocabulary correctly : Which of the following statements uses economic vocabulary correctly?
About the equities : "Equities" is another word for

Reviews

Write a Review

Business Economics Questions & Answers

  The interest rate is pre year compounded monthly

A loan for $80000.00 is to be paid with 12 equal payments, paid every other month (6 payments a year) ,The first payment being 9 months after barrowing the money. The interest rate is 12% pre year compounded monthly. What is the size of each of the 1..

  Explain how does imposing rent controls affect the number

Explain how does imposing rent controls affect the number of housing units available to low-income families

  Explicit cost total economic cost implicit cost shareholder

Economic profit is defined as the difference between total revenue and ________________. Explicit cost total economic cost implicit cost shareholder wealth

  Agricultural markets are often cited as exhibiting

Agricultural markets are often cited as exhibiting the characteristics of the perfect competition market structure. Does farming fit this model?

  Examples of some clear-out cases and some borderline ones

Explain why there is a blurry line dividing objects that are “money” from those that are not. Give examples of some clear-out cases and some borderline ones. Could the position of this blurry line change over time?

  First-time homebuyers creditin 2009 as well as 2010 the us

first-time homebuyers creditin 2009 as well as 2010 the us government instituted a program where all first-time

  Despite recent positive economic news for the us economy

Despite recent positive economic news for the US economy, some Federal Reserve officials are still worried about inflation being too low or even the threat of deflation. Why might an inflation rate that is too low be harmful to the US economy? Why mi..

  Change the decision to purchase the equipment

A new material handling equipment is being economically evaluated separately by engineers. the first cost is 107000, and salvage value of 35000. Both engineers estimated that the revenues from the equipment will generate 27000 per year. use the PW to..

  Result of your withdrawal and expenditure

Reserve requirement for banks is set at 5%. Your firm withdraws $42,000 on its line of credit at the Security Bank to purchase equipment for expansion. The equipment vendor deposits the amount that he receives from you at his bank, By how much has ea..

  Compare the automotive manufacturing industries

Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950's. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950's. What type of mark..

  Consider the market for minivans is at equilibrium

Consider the market for minivans is at equilibrium. Determine, using the supply and demand model, how the following events might affect the equilibrium price and quantity for minivans. Explain why fully. Consider each separately.

  Q1 in long-run equilibrium assume the economy in a short

q1. in long-run equilibrium assume the economy. in a short duration of time there is a pessimistic revision of

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