Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
Create money by making loans. How can commercial banks create money? Is the government the only institution that can legally create money?
Using the theory of purchasing power parity, explain how inflation impacts exchange rates.
Illustrate the short-run effects on prices, output, and employment of an increase in the money supply that is correctly anticipated by the public.
Problems with Active Policy Use an AD-AS diagram to illustrate and explain the short-run and long-run effects on the economy of the following situation.
What were the main differences between candidates Bush and Clinton in 1992 presidential campaign? Illustrate ideas using the aggregate supply and demand model.
Why is it hard for policy makers to decide whether the economy is operating at its potential output level? Why is this uncertainty a problem?
How could such expectations put pressure on officials to pursue expansionary policies even if they hadn't planned to?
Some economists call for predetermined rules to guide the actions of government policy. What are two contrasting rationales that have been given for such rules?
What is policy credibility and how is it relevant to the problem of reducing high inflation? How is credibility related to the time-inconsistency problem?
Anticipating Monetary Policy In 1995, the Fed began announcing its interest rate targets immediately. What is the value of this greater openness?
Review of Policy Perspectives Why might an active policy approach be more politically popular than a passive approach, especially during a recession?
What variable naturally adjusts in the labor market, shifting the short-run aggregate supply curve to restore unemployment to the natural rate?
Compare what you read in the article to what you learned about the Federal Reserve in the chapter.
What does the article say about whether the Fed considers international economic conditions when setting U.S. monetary policy?
What will happen to money demand over time? If the Fed leaves the money supply unchanged, what will happen to the interest rate over time?
What basic assumption about the velocity of money transforms. What happens to the price level in the short run in each of these three situations?
What is the value of a forward contract in terms of the current stock price, the interest rate, the delivery time, and the delivery price
Contrast the varying assistance programs for the poor in the United States, addressing how benefits are allocated, funded, and controlled.
Choose one article from the past two years about your home country and one article. Compare and contrast attitudes toward balanced national budgets.
Select Global Issues in Context. In the Basic Search box at the top of the page. Why was the author not concerned about the high U.S. national debt?
What is the new level of gross national debt? What happens to the level of debt held by the public as a percentage of GDP?
How have government outlays as a percent of GDP changed in the industrial countries depicted between 1992 and 2011?
Explain why Robert Barro argues that if parents are concerned enough about the future welfare of their children, the effects of deficit spending.
we've seen that the government can increase GDP in the short run by running a budget deficit. What are some long-term effects of deficit spending?
Why are the Social Security and Medicare programs headed for trouble? When will the trouble begin? What solutions have been proposed?