Inflation target Study guides, Revision notes & Summaries

Econ 203 Midterm Exam Actual Questions and Answers Complete 1. Commercial banks create money by: A. printing them. B. keeping a fraction of deposits as reserves and lending the rest. C. they do not, only the central bank can create money. D. none of the above. 2. What is the role of a commercial bank? A. To maximize profits for its shareholders B. To take customers’ deposits and make loans C. To create money through the banking system D. All the answers are correct 3. Which of th...

macroeconomics - Answer involves the study of the whole economy at the aggregate level policy objective - Answer a target or goal that policy-makers aim to 'hit' short-run economic growth - Answer Growth of real output resulting from using idle resources, including labour, thereby taking up the slack in the economy long-run economic growth - Answer an increase in the economy's potential level of real output, and an outward shift of the economy's production possibility fronti...

Devine Coicidence correct answers The Central Bank can set inflation targets, which not only helps inflation expectations, but also anchors DEMAND SHOCKS. If AD shifts down (SRPC shifts down), inflation falls but the fed has the credible threat of reducing interests rate, so AD doesn't fall. Dual mandate (and pros and cons) correct answers The US fed uses this: a mandate to achieve both price stability and maximum employment. Allows for greater flexibility in the trade off between output/emp...

Which driver weakened the Swiss franc? (C) - ANSWER a) A surprise change in net export expectations b)A surprise change in interest rates expectations c)A surprise change in inflation expectations d)A surprise change in valuation expectations How accurately do GDP portray the economy and why? - ANSWER Inaccurately because the scope of GDP measurements can change. Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. I...

State the six macroeconomic objectives Maintaining full employment Economic growth Achieving price stability Balacing exports and imports Environmental sustainability Reducing inequality Give examples of how different macroeconomic objectives can conflict with each other Economic growth and stable inflation Economic growth and balance of payments Unemployment and stable inflation Economic growth and inequality Economic growth and environmental sustainability. Explain wha...

Test Bank for CFIN7 7th Edition by Scott Besley, Eugene Brigham ISBN-13: 5150 Full Chapters test bank includes Multiple choice questions and True false Chapter 1. An Overview of Managerial Finance 1-1. What Is Finance? 1-1a. General Areas of Finance 1-1b. The Importance of Finance in Non-Finance Areas 1-2. Alternative Forms of business Organization 1-2a. Proprietorship 1-2b. Partnership 1-2c. Corpora...

Economics Today The Macro View Ch. 16 Money, Stabilization, and Growth 1. Money balances ️: Synonymous with money, money stock, money holdings. 2. Transactions demand ️: Holding money as a medium of exchange to make payments. The level varies directly with nominal GDP. 3. Precautionary demand ️: Holding money to meet unplanned expenditures and emergencies. 4. Asset demand ️: Holding money as a store of value instead of other assets such as corporate bonds and stocks. 5. Q...

Skip to main contentSide panel ECS1601-23-S2 Online assessments Assessment 1 QUIZ Assessment 1 Started on Saturday, 19 August 2023, 2:43 PM State Finished Completed on Saturday, 19 August 2023, 3:14 PM Time taken 30 mins 14 secs Marks 28.00/40.00 Grade 70.00 out of 100.00 Question 1 Complete Mark 2.00 out of 2.00 Flag question Question text The circular flow model reveals that a decrease in South African imports will … . a. decrease South African imports b. increase ...

FIN 322 Final Exam | Answered with complete solutions The ____ is directly responsible for setting reserve requirements. a. Federal Advisory Council b. FOMC c. Board of Governors d. President of the United States When the Fed initiated a program to purchase commercial paper, one of its primary goals was to a. prevent financial institutions from holding commercial paper. b. require that financial institutions increase their holdings of commercial paper. c. increase activity in the market for co...

Macroeconomics The study of the economy as a whole, including inflation, growth and unemployment. Aggregate demand The total amount of goods / services demanded in an economy at a given time at a given price level. Aggregate supply Total amount of goods and services supplied in the economy at a given time at given price level. What is GDP? Gross Domestic Product = the total value of all goods and services produced in an economy in a given time period. What does % ...