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Hey I could use some help answering these homework questions Assume that the currency-deposit ratio is 0.2 and the reserve-deposit ratio is 0.4. The Federal

Hey I could use some help answering these homework questions

Assume that the currency-deposit ratio is 0.2 and the reserve-deposit ratio is 0.4. The Federal Reserve carries out an open-market operation purchasing $10 million worth of bonds from banks. This action will increase the money supply by _____ .

20 million
40 million
10 million
30 million
Flag this Question Question 2 When the Federal Reserve extends a discount loan to a bank, the monetary base ________ and reserves ________.
increases; remain unchanged
remains unchanged; increase
remains unchanged; decrease
increases; increase
Question 3:Flag this QuestionIf the Federal Reserve wants to stimulate the economy and increase inflation, it can _____ .
decrease the reserve requirement
all of these answers
decrease the interest paid on reserve
buy bonds in financial markets
Flag this Question Question 4: To stimulate the economy during the Great Recession, the Federal Reserve _____ .
used forward guidance to influence financial markets expectations
implemented a large-scale asset purchase program to drive down long-term interest rates
all of these answers
decreased the Federal Fund Rate target near zero
Flag this Question Question 5 If inflation is below its target rate of 2 percent and output is below potential, the Taylor rule predicts _____ .
an increase in the real interest rate
an increase in the Federal Fund Rate
a decrease in the real interest rate
a decrease in the Federal Fund Rate
Flag this Question Question 6 Yield curves are steeply upward sloping when,
short-term interest rates are above long-term interest rates
short-term interest rates are about the same as long-term interest rates
future short-term interest rates are expected to fall
future short-term interest rates are expected to rise
Flag this Question Question 7 The yield curve is usually upward sloping because,
TIPS bonds are traded in less liquid markets than nominal treasuries
financial markets are not efficient
inflation expectations are typically positive
investors demand a term premium to hold long-term bonds
Flag this Question Question 8 Suppose that you observe that the yield on 10-year treasuries increase to 5% whereas the yield on short-term treasuries remain close to 0%. According to the Expectation Hypothesis you would interpret this observation as a sign that
short-term bond yields in the future are likely to rise above 5%
the fed may soon increase the Federal Fund Rate target
All of these answers
the market expects future output to exceed potential output
Flag this Question Question 9: The money supply may change without the central bank intervention.
True
False
Flag this Question Question 10: The yield curve can be upward sloping even if future short-term interest rates are expected to decrease.
True
False

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