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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
The belief that the money supply is the most important factor in macroeconomic performance is?
Monetarism ;)
What is the belief that the money supply is the most important factor in macroeconomic performance?
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.
Which of the following factors does not reduce the Federal Reserve's control of the money supply?
The factor that does not reduce the Federal Reserve's control of the money supply is the ability to set reserve requirements for banks.
What is the immediate effect of her deposit on the money supply?
The immediate effect of her deposit on the money supply is that it increases the reserves of the bank, allowing the bank to lend more money. When she deposits funds, the bank is required to hold a fraction as reserves but can lend out the excess, effectively creating new money through the lending process. This process can lead to a multiplier effect, where the initial deposit results in a greater overall increase in the money supply as loans are made and re-deposited.
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.
