Questions from General Economics


Q: Which of the three monetary policy tools is the least powerful?

Which of the three monetary policy tools is the least powerful? Why?

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Q: Which of the three monetary policy tools mainly has is impact felt

Which of the three monetary policy tools mainly has is impact felt primarily on altering expectations? Why?

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Q: Which of the three monetary policy tools is the one which is

Which of the three monetary policy tools is the one which is most used? Why?

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Q: Briefly summarize what the Fed could do with its policy tools if

Briefly summarize what the Fed could do with its policy tools if it wished to increase the money supply?

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Q: When would it be most appropriate for the Fed to increase the

When would it be most appropriate for the Fed to increase the money supply: during a recession or when the economy is expanding? Why?

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Q: What should the Fed do with the money supply today? Why

What should the Fed do with the money supply today? Why?

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Q: Assume velocity is constant and we are at full employment. In

Assume velocity is constant and we are at full employment. In order to increase the real GDP level 3%, then how much would we have to change the money supply?

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Q: Why is mutual interdependence important under oligopoly, but not so important

Why is mutual interdependence important under oligopoly, but not so important under perfect competition, monopoly, or monopolistic competition?

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Q: If the GDP increases what is expected to happen to the interest

If the GDP increases what is expected to happen to the interest rate?

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Q: When the Fed buys government bonds what happens to the price of

When the Fed buys government bonds what happens to the price of these bonds and the interest rate?

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