Question

In: Economics

48. The economy is considered at full employment, with a small amount of a natural rate...

48. The economy is considered at full employment, with a small amount of a natural rate of unemployment, only when

A. The structurally, seasonally, and cyclically are unemployed

B.	The frictionally and structurally are unemployed

C.	The frictionally, cyclically, and seasonally are unemployed

D. The structurally, frictionally, and cyclically are unemployed.

E. The frictionally, structurally, and cyclically are unemployed.

49. Which of the following causes an increase in the money supply?

A. Reducing the required reserve ratio for member and non-member banks.

B.	The fed board increase their own wages.

C.	The fed conducting an open market sale of government securities.

D.	A congressional monetary committee printing money.

E.	The President of the US demanding an increase in the money supply.

50. Tool used by the central monetary authority of the US indirectly influence:

A.	Government spending.

B.	The Supply of Money

C.	Tax rate policy

D.	the annual budget.

E.	allocation of social security payments

Expert Solution

Q48. Option B

The situation in which an Economy operates at an unemployment rate equal to the sum of the frictional and structural unemployment rates also called the natural rate of unemployment.

49. Option c.

Fed can affect the money supply by conducting an open market operations.

Which affects the federal fund rate.

In open operations fed buys and sells

Government securities in the market.

If it wants to increase the money supply,it buys government bonds.

This supplies the securities dealers who sell the bonds with cash increasing the overall supply of money.

50. Option B. Supply of money

If a nation's Economy were a human body

Then its heart would be a central bank.

As heart works to pump life giving blood through out the body,

Central Bank pumps money in to the Economy to keep it healthy and growing.

Central Bank controls the quantity of money in circulation.

Central Bank quantity of money depending on the Economic situation and the power.

In US central Bank is the federal Reserve called as fed.

Rahul Sunny answered 2 years ago

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