PLEASE ANSWER ALL AS TRUE OR FALSE THANK YOU VERY MUCH The Fed Chairman is Paul
ID: 1211880 • Letter: P
Question
PLEASE ANSWER ALL AS TRUE OR FALSE THANK YOU VERY MUCH
The Fed Chairman is Paul Volker The multiplier effect depends on the fact that people consumes atleast a part of their incremental income. US has no deficit problem, the problem is politics Currency is the main form of money in the US. The open market operations of the Federal Reserve can directly affect interest rates as well as the reserve position of member banks. The marginal and average propensities to consume are the same for most families. When the Federal Reserve raises rediscount rates, this makes it easier for the banks to lend more. GDP is measured in dollar terms rather than in terms of units of outputs. The expansionary effect of government deficit spending is least when funds are borrowed from the banks. The economic cost of unemployment is wasted resources and output that the society foregoes. The relationship between total spending, employment, output and price level are generally direct. Creeping inflation involves small increases in the level of prices, and it too, can benefit and hurt different groups in the economy.Explanation / Answer
1. False. Janet L. Yellen is the Federal chairman.
2. True as multiplier = 1 / (1-MPC) and MPC is the marginal propensity to consume.
3. True.
4. True
5. True. Open market operation includes sale and purchase of government securities which affects the money supply in the economy and affected the reserve position of the banks.
6. False
7. True
8. False
9. True because if governmet does not borrow from banks then also banks will lend this money.
10. True as unemployed person can add some value in the GDP of the country.
11. True. Increase in spending increases money supply which increases price level, government spending creates employment and due to this output also increases.
12. True.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.