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The most basic measure of the money supply in the US consists of what?
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Which of three basic tools used by the Fed to change the money supply is least relied on in practice?
cash
Why is it difficult for the Fed to get an accurate measure of the money supply?
The Federal Reserve, is the gatekeeper of the U.S. economy. There is too much money in circulation to get an accurate amount.
What is the narrowest measure of the money supply developed by the Federal Reserve System in the US?
Called M1. It's the measure of cash and deposits on hand (things that can be quickly converted to cash).
Why do changes in money supply not affect GNP?
According to the Federal Reserve the money supply consists of safe liquid assets such as U.S. currency, checking, and savings accounts that businesses and households can use to pay bills or purchase items. The money supply can be measured in different ways depending on which monetary aggregates are included in the calculation. A large increase in the money supply has been linked to an increase in the price level and growth in nominal gross domestic product which is not price adjusted for inflation. Changes in the money supply have not had a close correlation to changes in gross domestic product over the past several decades which is why the Federal Reserve has diminished the importance of changes in the money supply as it relates to conducting monetary policy.
How does raising the discount rate affect the money supply?
Decreases the money supply
Do you have supply of money in India ppt?
there are four measure of money supply in india,
Which of three basic tools used by the Fed to change the money supply is least relied on in practice?
cash
Why is it difficult for the Fed to get an accurate measure of the money supply?
The Federal Reserve, is the gatekeeper of the U.S. economy. There is too much money in circulation to get an accurate amount.
What is the narrowest measure of the money supply developed by the Federal Reserve System in the US?
Called M1. It's the measure of cash and deposits on hand (things that can be quickly converted to cash).
Why do changes in money supply not affect GNP?
According to the Federal Reserve the money supply consists of safe liquid assets such as U.S. currency, checking, and savings accounts that businesses and households can use to pay bills or purchase items. The money supply can be measured in different ways depending on which monetary aggregates are included in the calculation. A large increase in the money supply has been linked to an increase in the price level and growth in nominal gross domestic product which is not price adjusted for inflation. Changes in the money supply have not had a close correlation to changes in gross domestic product over the past several decades which is why the Federal Reserve has diminished the importance of changes in the money supply as it relates to conducting monetary policy.
Criticism of payback period?
The basic criticisms of the payback period method are that it does not measure the profitability of an investment and it does not consider the time value of money.
The money income of households consists of the sum of?
The money income of households consists of the sum of wages plus salary.
How does raising the discount rate affect the money supply?
Decreases the money supply
What factors determine money supply?
factors which determine money supply is: open market operations, variable money supply bank rate policy.
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 if there is an increase in the money supply that causes prices to rise and leads to inflation what happens to money?
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
If there an increase in the money supply that causes prices to rise and leads to inflation what happens to money?
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
