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Can someone please help me what are the answers for these questions? I would appreciate it if I get the reason as well. Why does
Can someone please help me what are the answers for these questions? I would appreciate it if I get the reason as well.
Why does the central bank have greater control over the monetary base than over the money supply? It happens because: 0 a. the money supply is influenced by the money multiplier, which is, in part, affected by the nonbank public. 0 b. the central bank can control the monetary base through the required reserve ratio, but has absolutely no influence on the money multiplier. O c. the money supply is influenced by bank reseNes, which are, in part, affected by the nonbank public. 0 d. the central bank can control the monetary base through open market operations, but has absolutely no influence on the money multiplier. Suppose that the inflation rate turns out to be higher than expected. For investors who bought bonds issued when the inflation rate was expected to be lower, this news is: O a. bad since the nominal return on their investment will be lower than they anticipated. 0 b. bad since the real return on their investments will be lower than expected 0 c. not relevant since their investment's nominal return is unaffected C) d. good since the real return on their investment will be higher than they anticipated What two actions by households and firms, banks, or the central bank will cause the value of the money multiplier to increase? 0 a. A decrease by households and firms in their holdings of currency relative to their holdings of chequing account deposits; a decrease in banks' ratio of reserves-to- deposits. 0 b. An increase by households and firms in their holdings of currency; a decrease in banks' holding of deposits. 0 c. A decrease by households and firms in their holdings of chequing account deposits relative to their holdings of currency; an increase in banks' ratio of deposits-to-reserves. Q d. An increase by households and firms in their holdings of currency relative to their holdings of chequing account deposits; an increase in banks' ratio of reserves-to- depositsStep by Step Solution
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