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Hi please provide the correct answers and explanations for the following questions they are on unit 3 of ap macroeconomics. Please type the explanations. Thank

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Hi please provide the correct answers and explanations for the following questions they are on unit 3 of ap macroeconomics. Please type the explanations. Thank you. I can also Venmo you a tip if you complete it by tonight. Thanks!

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27. If the economy is in a severe recession, which of the following policy actions is most appropriate? 32. If wages are sticky, which of the following policies 36. Which of the following is true of the opportunity (A) Keeping the money supply constant and will be the most effective in raising real gross cost of holding cash? reducing budget deficits domestic product to the full-employment level? (A) It is zero (B) Decreasing government spending and taxes by (A) Doing nothing, since there are automatic (B) It is represented by the value of the dollar the same amount stabilizers (C) It is equal to the price level C) Increasing both the money supply and (B) The sale of bonds by the Federal Reserve D) It decreases as the price level rises government spending (C) An increase in the income tax es as the interest rate rises (E) It increases as the in Increasing both the federal funds rate and taxes (D) An increase in government spending () Decreasing the money supply and increasing (E) An increase in the discount rate 37. In the long run, an increase in aggregate demand taxes due to an expansion in the money supply will 83. Which of the following actions by the Federal increase 28. Of the following, the most liquid asset is Reserve of the United States increases the money A) price level and real output (A) mutual funds supply? (B) nominal output and real output (B) currency (A) Buying government bonds on the open market (C) nominal output but not the price level (B) Selling government bonds on the open market D) nominal output and the price level Cy time deposits (D) demand deposits (C) Increasing the reserve requirement (E) real output but not the price level E) savings deposits (D) Increasing the discount rate (E) Increasing the federal funds rate $8. Assume that the reserve requirement for demand deposits is 20 percent, that banks hold no excess 29. Which of the following policies, if appropriately 34. If a contractionary fiscal policy is followed by an reserves, and that the public holds no currency. If sized, would provide expansion during a recession expansionary monetary policy, nominal interest the central bank sells $10,000 worth of with the smallest change in interest rates? rate and employment would most likely be government securities to commercial banks, the A) An open-market purchase of government affected in which of the following ways in the total money supply will securities by the central bank and a decrease in (A) increase by $10,00 the federal funds rate short run? Nominal Employment B) increase by $50,000 B) An open-market sale of government securities Interest Rate C) decrease by $10,000 by the central bank and an increase in the Increase D) decrease by $50,000 federal funds rate Increase Decrease E) not change le Increase C) A decrease in taxes and an open-market Decrease Decrease 39. Open market operations take place when the left purchase of government securities by the Decrease Indeterminate central bank Indeterminate Decrease (A) central bank buys or sells stocks D) An increase in government spending and an B) central bank buys or sells government bonds open-market sale of government securities by 35. If the interest rate on short-term government C central bank increases or decreases the the central bank bonds declined as a result of open market discount rate to monitor the money supply E) An increase in taxes and an increase in the operations by a central bank, the central bank D) central bank increases or decreases reserve federal funds rate must have requirements for depository institutions (A) purchased government bonds E) commercial banks borrow reserves from the 30. If the velocity of money is constant and the (B) sold government bonds to commercial banks central bank aggregate supply curve is vertical, a doubling of (C) decreased the amount of currency in circulation the money supply would most likely result in a increased the supply of bonds 40. If the required reserve ratio is 0.2, a $1 billion doubling of (E) increased the discount rate on loans to increase in bank reserves can lead to an increase in (A) the unemployment rate commercial banks M1 of at most B) real output A) $6 billion C) the price level (B) $5 billion (D) nominal interest rates C) $1 billion E) real interest rates (D) $0.8 billion E) $0.2 billion 31. Assume that the public holds part of its money in cash and the rest in checking accounts. If the central bank lowers the reserve requirement from 16 percent to 8 percent, the money supply will A) decrease by more than half B) decrease by half C decrease by less than half D) exactly double (E) increase by less than double

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