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hello i need help with these macroeconomic questions please and thankk you all information provided below Question 1 of 20 This quiz: 20 point(s) possib
hello i need help with these macroeconomic questions please and thankk you
all information provided below
Question 1 of 20 This quiz: 20 point(s) possib This question: 1 point(s) po Suppose all banks have zero excess reserves. The Bank of Canada buys bonds for $1 million and a bond dealer deposits the cheque in his or her bank. The desired reserve ratio is 8 percent. The bank loans out the maximum it is allowed to a local business. The business writes a cheque for the full amount for supplies, which is then deposited in another bank. The largest loan the second bank can make is: O A. $80,000. O B. $73,600. O C. $920,000. O D. $846,400.The demand for money: Next question O A. is positively related to the opportunity cost of holding money. O B. is a downward-sloping function of the interest rate. O C. is an upward-sloping function of the interest rate. O D. None of the above.Contractionary monetary policy causes the: O A. dollar value of real GDP to increase. O B. price level to increase. O C. amount of government spending to increase. O D. interest rate to increase. The net export effect of contractionary monetary policy predicts that a country's: O A. value of currency depreciates as the money supply contracts. O B. exports decrease as the money supply contracts. O C. imports decrease as the money supply contracts. O D. All of the above.Open market operations: O A. inject reserves into the banking system when the Bank of Canada sells Canadian government securities. O B. are the purchase and sale of existing Canadian government securities by the Bank of Canada. O C. are directed by the Board of Governors. O D. All of the above.The Bank of Canada sells $20,000,000 in bonds to Jim, a bond dealer who pays for the bonds with a cheque drawn on his bank. Assume a 5% required reserve ratio. Which of the following statements correctly records this transaction at Jim's bank with respect to the bank's reserves? O A. They will go down by $150,000,000. O B. They will go up by $20,000,000. O C. They will go down by $20,000,000. O D. They will go up by $1,500,000.Which of the following is not a reason why people choose to hold money balances? O A. Liquidity. O B. Money holdings are good assets during periods of inflation. O C. Having cash to pay for unplanned expenditures and emergencies. O D. Reduced risk compared to other assets.According to the equation of exchange, if velocity is constant and output is fixed at the full employment level, then any percentage increase in the money supply will: O A. lead to an equal percentage increase in output. O B. be distributed as 1/2 going to higher output and 1/2 going to a higher price level. O C. lead to an equal percentage increase in the price level. O D. be distributed as 3/4 going to higher output and 1/4 going to a higher price level.In an open economy, the net export effect: O A. may enhance an expansionary fiscal policy and an expansionary monetary policy. O B. may offset an expansionary monetary policy but enhance an expansionary fiscal policy. O C. may offset an expansionary fiscal policy but enhance an expansionary monetary policy. O D. may offset an expansionary fiscal policy and an expansionary monetary policy.According to the equation of exchange, if real GDP is $10 trillion, the money supply is $2.5 trillion, and the price level is 1.25 , we know that velocity is: O A. 5. OB. 10. O C. 7.5. O D. 2.5Step by Step Solution
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