23 Jul WHAT IS THE ULTIMATE EFFECT ON THE MONEY SUPPLY?
A) What phase of the Business Cycle is the U.S. economy currently experiencing? Give reasons for you Show more A) What phase of the Business Cycle is the U.S. economy currently experiencing? Give reasons for your answer. B) Explain the difference between Cyclical and Structural unemployment. Can Structural unemployment be eliminated? Why or Why not? C) Explain the difference between Demand-Pull and Cost-Push inflation. 3. A) Briefly describe three factors that could shift the investment demand curve of the economy to the right. B) Briefly describe three factors that could shift the aggregate demand curve of the economy to the right. C) Briefly explain the difference between the deficit of the Federal government and the National debt of the United States. D) Explain why the short run aggregate supply curve is an upward slopping curve (A) If the reserve ratio = 10% and the FED buys $5000 of government securities what is the initial effect on the money supply? What is the ultimate effect on the money supply? (B) Is current U.S.Monetary Policy expansionary or restrictive? Provide a specific example that supports your answer. (C) Describe the cause-effect chain through which Monetary Policy works. Show less
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