Suppose the Fed sells $200 billion in government securities, which results in a $2000 billion decrease in the money supply.
In the long run, the decrease in the money supply will cause the price level in the economy to ___(increase / decrease / remain unchanged)___ and real GDP to ___(increase / decrease / remain unchanged)___.

Answers

Answer 1

Answer:

In the long run, the decrease in the money supply will cause the price level in the economy to ___decrease___ and real GDP to ___remain unchanged___.

Explanation:

Decrease in money supply decreases aggregate demand leading to decrease in real GDP. In the long run, nominal wages will fall, leading to increase in aggregate supply. This results in further decrease in price level and increase in real GDP to its initial level.

The sale of government securities by the Fed reduces the level of reserves in the banking system, thus decreasing the money supply. Since people will hold less money than they desire for purchases, their spending will decline. As a result, the price level will fall until the real value, or purchasing power, of the money supply has returned to its initial level, enabling people to again make their desired purchases. This will occur when the price level has fallen proportionately to the decline in the money supply. At the same time, since nothing has happened to affect the economy’s productive capacity—which is determined by the availability of factors of production and technology—a change in the money supply will have no long-run effect on real GDP.


Related Questions

what are the methods to establish valid assessment ​

Answers

= Deconstruct the standards

= Align items and levels of thinking

= Take items to the next level with rigor and relevance

= Make assessment part of planning

The methods are given below.

Deconstruct the standardsAlign items and levels of thinkingTake items to the next level with rigor and relevanceMake assessment part of planning

What is the validity assessment method?

Assessment validity refers to the extent that which a test measures what it is supposed to measure. The Standards for Educational and Psychological Testing (2014) defines validity as the “degree to which evidence and theory support the interpretations of test scores for proposed uses of tests”.

What are the different types of validity?

Validity can be demonstrated by showing a clear relationship between the test and what it is meant to measure. This can be done by showing that a study has one (or more) of the four types of validity: content validity, criterion-related validity, construct validity, and/or face validity.

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importance of training and development in the public sector

Answers

Explanation:

It is necessary for the public sector organisation to train and develop the skills of its personnel in order to improve organisational.,team and individual performance.

Why was Earth Day planned for April 22?
A
April 22 was Senator Nelson's birthday.

B
Most college students would be on spring break in April.

C
The weather was likely to be warm and pleasant toward the end of April.

D
Senator Nelson didn't want his new holiday to compete with the 4th of July.

Answers

B, Most college students would be on spring break in April

Which of the following was NOT part of the Republican party's platform in the post-Civil War period?

Answers

you didn’t post any options.

When selecting federal judges is the president required to get Congressional approval? Why or why not?

Answers

Answer:

Judges of the supreme Court.” The process of appointing Justices has undergone changes over two centuries, but its most basic feature—the sharing of power between the President and Senate—has remained unchanged: To receive appointment to the Court, a candidate must first be nominated by the President and then confirmed

who is better?


kirishima or bakugo

Answers

Answer:

I think Kirishima.

Explanation:

I don't know both of these. Sorry if I am wrong.

Answer:

OMG KIRISHIMA IS WAY HOTTER!!!

Explanation:

Why do people borrow money from banks?

To buy books and music
To buy large items like cars
To go to a fancy restaurant
To hide in their mattresses

Answers

Answer:

anyways the answer is B

Explanation: people only borrow money when it's important, the only thing important there is B, i also did the test and got it right and the bank wouldn't give someone money to go in a fancy restaurant or to hide their mattresses or to buy books and music.

Why was the Northwest Ordinance of 1787 considered a good thing?

Answers

Answer:

Also known as the Ordinance of 1787, the Northwest Ordinance established a government for the Northwest Territory, outlined the process for admitting a new state to the Union, and guaranteed that newly created states would be equal to the original thirteen states.

Explanation:

Question: Who was second in command to the local kings and managed the city-state courts in the Aztec Empire?

Answer Choices:
priests
warriors
chief justices
tlatoanis

Answers

Answer:

Worriors

Explanation:

B is probably the best answer

Answer:

it is chief justices

Explanation:

i got it right myself

What is the major difference between nuclear and extended families?

Answers

Answer:

The major difference between nuclear and extended families is that a nuclear family simply includes a mother, father and children, while the extended family includes them but additional members such as grandparents, aunts, uncles, nieces, nephews and more.

Explanation:

HURRY ANSWER I THINK I GONNA FAIL I WILL MARK BRAINLY ASAP. Which term refers to only small amounts of certain items such as meat, sugar, coffee, and gasoline being sold to citizens during a war? (1 point) O dictator O neutral O ration O reparation​

Answers

Answer:

looked it up

Explanation:

Answer:

The Correct Answer Is  Ration

Explanation:

Every American A Series Of RATION Books.

What does the ability to build great buildings out of stone tell you about maya political power?

Answers

Answer:

The ability to build great buildings out of stone tells you that Mayan political power was needed to build them. Mayan architecture was remarkable because of scale because the Mayan buildings were very big.

Explanation:

Hope it helps...:)

What was one benefit of being a scribe?

A) Scribes were buried in the pyramids.
B) Scribes only worked for the pharaoh.
C) Scribes were able to travel throughout the world.
D) Scribes had more comfortable lives than other people.

Answers

The answer is c because this came up before while I was in school

You are Chair of the Federal Reserve Board. In your meeting with the Federal Open Market Committee, the committee unanimously votes to increase the money supply using open market operations (OMOs). During the press conference after the meeting, a reporter asks you to explain what OMOs are and how you will use them to increase the money supply. You reply that:

a. OMOs are the selling and buying of government securities. The money supply increases when purchasing occurs and contracts when selling occurs. OMOs work by changing the amount of excess reserves available in the banking system.
b. OMOs alter the reserve requirement up or down. The money supply will increase when we use OMOs to decrease the reserve requirement.
c. Open market operations refer to manipulating the rate at which the Federal Reserve Bank (Fed) loans money to member banks. An increase in the money supply occurs when the Fed increases this rate, which decreases the amount of required reserves in the banking system.
d. OMOs are the selling and buying of government securities. The money supply increases when selling occurs and contracts when buying occurs. OMOs work by changing the amount of excess reserves available in the banking system.

Answers

Answer:

a. OMOs are the selling and buying of government securities. The money supply increases when purchasing occurs and contracts when selling occurs. OMOs work by changing the amount of excess reserves available in the banking system.

Explanation:

OMOs are open market operations and refer to the purchase and sale of government securities by the Federal Reserve Bank (Fed) in an effort to change the money supply. If the Fed wants to increase the money supply, it will purchase government securities. The Fed buys the securities and pays for them by increasing the selling banks' reserves in their account at the Fed. The increase in reserves will increase the amount of excess reserves in the banking system and fuel deposit expansion, assuming the bank wishes to keep excess reserves at a minimum.

The answer to your question should be A.

Which ideas from the poem are best reflected in the painting? Check all that apply.

Answers

Can I please have the poem and a picture of the painting so I can answer

Which statement best summarizes this passage? Segregation of schools harms African American children. Children eventually overcome the effects of segregation. Segregation is a form of separation, not discrimination. Segregation has no association with racial inferiority.

Answers

Answer: segregation of schools harm African American children

Explanation:

got it right on Edge

As segregation of schools harms African American children, were statement best summarizes this passage. Thus option (A) is correct.

What is the passage?

The length of a passage varies depending on the context and the goal of the extraction. A passage can be, for example, a sentence's clause, a few phrases, or it can be a few pages.

American children are negatively impacted by school segregation. They are unable to socialize with their classmates from different schools, which may cause social isolation. They might experience some type of discrimination and eventually retreat.

Therefore, The right option (A) is correct.

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The two items that the Arayans brought into India were the Caste System and the religion called Hinduism.
True
False

Answers

Answer:

True

Explanation:

Answer:

True

Explanation:

Which of the following explains the implications of the federal government buying back its own debts from the Federal Reserve?(1 point)

The demand for Treasurys from investors and foreign governments could be diminished from the Federal Reserve buying the securities.

The money supply increases, which results in higher interest rates for the national debt, which could increase the amount spent to pay for the interest on the national debt.

The money supply decreases, which could result in a liquidity crisis for the banks and the federal government. Interest rates would decrease to help increase the money supply.

Interest rates on the national debt decrease, which decreases the amount spent to pay for the interest on the national debt. The federal government could pay for social welfare programs.

Answers

Answer:

c

Explanation:

help me out with this question in attachment​

Answers

Answer: uhh its a go ogle meeting

Explanation:

The Blackfoot hunted bison in which culture region?
O Pacific Northwest
O Southwest
O Great Plains
O Eastern Woodlands

Answers

Answer:

great plains

Explanation:

The Blackfoot (also called “Blackfeet”) are a Native American nation who were once nomadic. They migrated from the Great Lakes region to the northwestern United States. They lived in the northern Great Plains, especially in the rich bison ranges of southern Alberta and northern Montana

Answer:The answer is outhern Alberta and northern Montana.

Explanation:

Paraphrase When you paraphrase, you restate a text in your own words. Paraphrase Romeo’s thoughts in act III, Scene iii, lines 29-51. (b) Criticize How would you describe Romeo’s response in these lines?

Answers

The line " This is Dear mercy, and thous seest it not"  this lines depicts according to Friar, that the punishment was a type of mercy and he should be grateful.

What was the line about?

The lines from act III, scene III of Romeo and Juliet is one that  Friar Laurence  makes  Romeo to understand that he had to be grateful for this punishment given to him

When Romeo knows about his punishment for his act of killing Tybalt and that it was banishment, he informs Friar Lawrence  that he prefer death than been banished but Frair made him to see reasons why it was better.

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this type of policy is most similat to which cold war idea
?

Answers

Answer:Proxy wars.During the Cold War period, the so called proxy wars, used by the United States and the Soviet Union

Explanation:

What is Chang in demand

Answers

Answer:

A change in demand describes a shift in consumer desire to purchase a particular good or service, irrespective of a variation in its price.

Answer:

the result of a change in any of the demand, such as consumer preferences

Explanation:

A change in demand is the result of a change in any of the demand determinants, such as consumer preferences, consumer expectations, consumer income, the price of related products and the number of buyers. When consumer income decreases, consumer spending decreases; therefore, consumers spend less on any given price level.

how does teenage pregnancy at schools affect teachers​

Answers

Answer:

Teenage pregnancy has a negative impact on the pregnant learners themselves.

Explanation:

Effects of teenage pregnancy on learners at school

Teenage pregnancy has a negative impact on the pregnant learners themselves. Their situation leads to exclusion from peer groups, poor performance or even to their dropping out of school. However, sometimes their pregnancy is the result of a deliberate act because it is seen as fashionable.

Describe TWO different reasons that South Carolina’s rice plantations depended on enslaved Africans.

Answers

Because they knew how to plant, grow, harvest, and perform well through the difficulties in the labor intensive crop. They were native and experienced.

what are needed to clean a classroom?​

Answers

Answer:

Empty & Disinfect Trashcans Daily. ...

Limit Touching Doorknobs & Handles. ...

Clean Desks & Tables Daily. ...

Pay Attention to Plastic Surfaces. ...

Develop a "Clean Toy" System. ...

Make Sure Fabric Toys Are Washable. ...

Limit Who Uses Whiteboards. ...

Disinfect High-Touch Technology Often

Hieratic writing was first used for ___________.

A) letter writing
B) public announcements
C) royal and sacred documents
D) government documents

Answers

Answer:

A) letter writing

Hope This Helps

What is called "the greatest movement of people in the history of the world"?

A) the importation of slaves from Africa
B) the forced march of eastern Native Americans to Oklahoma territory

C) the original colonization of North America

D) the many millions of people who emigrated to the United States from 1790-1930​

Answers

Answer:

A

Explanation:

Answer:

A

Explanation:

the greatest movement of people in the history of the world"?

These types of governments attempt to control all aspects of citizens' lives (an
example would be a Communist Regime, such as China)?
Oligarchy
Dictatorship
Constitutional monarchy
Totalitarian dictatorship

Answers

Answer:

dictatorship totalitarian dictatorship

Explanation:

Which word signals a descriptive example?
Is
has
show
including

Answers

Answer:

It likely is 'has' because not only is it about to describe something that a certain thing or person looks like or is and has but unlike show the second choice you'd think is a descriptive example because of what it means, show is only a definition of description it is not setting a descriptive example.

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