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Why do wages and row material affect short-run aggregate supply but not long-run aggregate supply?
wages and raw material effect short run aggregate supply because of productivity factor but money is neutral in the long run so will never effect long run
What is the belief that the money supply is the most important factor in macroeconomic performance?
monetarism
The belief that the money supply is the most important factor in macroeconomic performance is?
Monetarism ;)
A long-run effect of increasing the money supply can be inflation?
true
What effect does an increase in the money supply have on inflation?
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
Why do wages and row material affect short-run aggregate supply but not long-run aggregate supply?
wages and raw material effect short run aggregate supply because of productivity factor but money is neutral in the long run so will never effect long run
What is the belief that the money supply is the most important factor in macroeconomic performance?
monetarism
The belief that the money supply is the most important factor in macroeconomic performance is?
Monetarism ;)
A long-run effect of increasing the money supply can be inflation?
true
Can i reduce electric bill by improving power-factor?
For a residential consumer, power-factor improvement has absolutely no effect on one's electricity bill. Adding power-factor improvement capacitors at the point of supply will have absolutely no effect upon the operation of the load circuits, but it may act to reduce the supply current. But reducing the supply current will not reduce one's energy consumption.
What effect does an increase in the money supply have on inflation?
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
What is the most likely effect of the Federal Reserve lowering the discount rate on overnight loans?
The most likely effect of the Federal Reserve lowering the discount rate on overnight loans would be an increase in the money supply. an increase in the money supply
What is the most likely effect of the fed lowering the discount rate on overnight loans?
An increase in the money supplyAn increase in the money supply
What is non monetised deficit?
Effect of expansionary fiscal policy which increases money demand and r but money supply reman constant
If the federal reserve sells 40 000 in treasury bonds to a bank with 5 interest what is the immediate effect on the money supply?
If the federal reserve sells $40,000 in treasury bonds to a bank with 5% interest the immediate effect on the money supply is an decrease of $40,000.
Why do the actions of central banks have an important effect on the global economy?
Control of the money supply determines how much money is available for international trade.
Describes the most likely effect of the fed buying millions of dollars in t-bonds?
an increase in the money supplyAn increase in the money supply
