Question: 2. (a) What is reserve ratio? Provide an example how central bank may implement contractionary monetary policy by using required reserve ratio? (b)Recently government has

2. (a) What is reserve ratio? Provide an example how central bank may implement contractionary monetary policy by using required reserve ratio?

(b)Recently government has increased per unit electricity price. What type of inflation it may trigger in the economy and why?

Government wants to finance for a long-term infrastructure project. For that will higher base of narrow money or board money will be more helpful - explain with logic.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

One. Consider a two-period small open economy populated by a large number of identical households with preferences described by the utility function lnCT 1 + lnCN 1 + lnCT 2 + lnCN 2 where CT 1 and...

Unit 3 and Unit 4 Problem Set 1.Assume the United States economy is macroeconomic equilibrium at full employment, when it experiences a technology boom that improves technology across industries and...

1.Assume the United States economy is macroeconomic equilibrium at full employment, when it experiences a technology boom that improves technology across industries and improves productivity....

1. With regard to real GDP, which of the following statements is correct? It is defined as the value of final goods and services produced in a given year when valued at the prices of a reference base...

For the exclusive use of X. Ye, 2017. ARVIND KRISHNAMURTHY AND TAFT FOSTER KEL782 Quantitative Easing in the Great Recession On October 29, 2008, the Federal Open Market Committee (FOMC) concluded...

Hi, Please answer the following questions in the pictures that are circled in blue (the question number is circled). Then provide a typed explanation of each correct answer. Thanks Real Output Peak...

4 Files 3:17 PM Fri May 13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: POLICY BASICS Use the space below to take notes during class. The Federal Reserve: Monetary Policy:...

4 Files 3:18 PM Fri May '13 Insert Draw Layout Review View Unit SMacroeconomic Policy Name: HR: FISCAL POLICY Use the space below to take notes during class. Disposable Income: How does a change in...

If Australia experienced an increase in inflation to approximately 2.8%, while inflation in other developed countries like the United States remained around 1.1%, then, initially (considering just...

How can organization become more open to feedback? What kind of employee training would help? What would you tell your employee about feedback importance if you were the boss?

1. Using the Rule of 72 , you are making an investment that you want to have double in value in 15 years. How much does the investment have to appreciate each year? 2. You are a developer and you...

A form of intellectual property that grants an inventor a temporary monopoly on a new product or process in exchange for disciosing the details of how the product or process is made is called ainy...

Brenda and Sally are interested in organizing a new interior decorating business as 80-20 owners. Brenda will contribute $80,000 in exchange for an 80% ownership interest and Sally will contribute...

A corporate bond with 12 years to maturity has a 9 percent semiannual coupon and a face value of $1,000. (That is, the semiannual coupon payments are $45.) The bond has a nominal yield to maturity of...

If a fair coin is tossed at random 5 independent times, then find the conditional probability of 5 heads relative to the hypothesis that there are at least 4 heads. Book\\\'s answer: 1/6 My approach:...

You are a recently hired consultant for a local pizza company that wants to expand its business into a market that includes Jet's Pizza, Pizza Hut and, Domino's pizza. The company you are working for...

The table below shows information from an assembly line; the company produces 500 units of product in an 8-hour shift. Nonproductive times are estimated to be 50 minutes with a plant efficiency is...

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

Always show respect for the other person or persons.

Self-awareness is linked to the businesss results.

1. Too reflect on self-management