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Quiz 5 Questions

  1. Explain which of the following are counted as part of the money supply (M1):
    a. Checking account deposits
    b. Stocks
    c. Savings account deposits
    d. Government bonds
  2. What is a fractional reserve banking system? What is its role in the monetary side of the economy?
  3. What are the three tools the Federal Reserve uses to change the money supply and interest rates in the economy? Which of these tools is most important and why?
  4. Explain whether the following statement is true or false:
    If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as people sell bonds to obtain more money.
  5. Explain whether the following statement is true or false:
    The federal government’s control of the money supply, which influences interest rates, is the primary tool that policy makers use to impact the macro economy.
  6. Explain whether the following statement is true or false:
    A decrease in the reserve requirement decreases the money supply because banks have fewer reserves.
  7. Explain whether the following statement is true or false:
    The real money demand curve shows how households and businesses change their spending in response to changes in the interest rate.
  8. Explain whether the following statement is true or false:
    Both an increase in the nominal money supply by the Federal Reserve and an increase in the price level will cause the real money supply curve to shift to the right.
  9. In current business publications or on the Federal Reserve Web site (www.federalreserve.gov (Links to an external site.)), find the press release from the most recent meeting of the FOMC. What is the targeted federal funds rate? How does the FOMC evaluate the balance of risks between its goals of price stability and sustainable economic growth?
  10. On the Federal Reserve Web site (www.federalreserve.gov (Links to an external site.)), find the version of the Beige Book that summarizes economic conditions in your Federal Reserve district. Summarize those conditions and relate them to current FOMC policy
  11. Explain how each of the following changes would shift the aggregate expenditure function (Chapter 12) and the aggregate demand curve (Chapter 14):
    a. An increase in personal taxes
    b. An increase in expected profits and business confidence
  12. Explain how each of the following changes would shift the aggregate expenditure function (Chapter 12) and the aggregate demand curve (Chapter 14):
    C. A decrease in the level of foreign GDP or real income
    D. A decrease in the nominal money supply by the Federal Reserve
  13. Evaluate whether each of the following statements is true or false, and explain your answer:
    a. The short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase.
    b. The long-run aggregate supply curve can never shift.
  14. Evaluate whether each of the following statements is true or false, and explain your answer:
    c. Either a decrease in the nominal money supply by the Federal Reserve, all else held constant, or an increase in the price level, all else held constant, will shift the aggregate demand (AD) curve to the left.
    d. The Keynesian portion of the short-run aggregate supply (SAS) curve would be relevant during a recessionary situation.
    e. Stagflation occurs when the aggregate demand (AD) curve shifts out on the upward sloping portion of the short-run aggregate supply (SAS) curve.
  15. Describe how the following statements relate to the AD–AS model:
    a. The Fed has bought more than $2 trillion of Treasury and mortgage bonds to stimulate the economy.
  16. Describe how the following statement relates to the AD–AS model:
    b. The above actions by the Fed may cause inflation to rise to levels that most would consider unacceptable.
  17. Describe how the following statement relates to the AD–AS model:
    c. The Fed expected a weaker dollar to help increase exports.
  18. Describe how the following statement relates to the AD–AS model:
    d. Businesses already have ample access to cheap credit and are reluctant to borrow, hire, and invest for other reasons.

Sample Answer

Compelling correspondence is essential to the achievement all things considered but since of the changing idea of the present working environments, successful correspondence turns out to be more troublesome, and because of the numerous impediments that will permit beneficiaries to acknowledge the plan of the sender It is restricted. Misguided judgments.In spite of the fact that correspondence inside the association is rarely completely open, numerous straightforward arrangements can be executed to advance the effect of these hindrances.

Concerning specific contextual analysis, two significant correspondence standards, correspondence channel determination and commotion are self-evident. This course presents the standards of correspondence, the act of general correspondence, and different speculations to all the more likely comprehend the correspondence exchanges experienced in regular daily existence. The standards and practices that you learn in this course give the premise to additionally learning and correspondence.

This course starts with an outline of the correspondence cycle, the method of reasoning and hypothesis. In resulting modules of the course, we will look at explicit use of relational connections in close to home and expert life. These incorporate relational correspondence, bunch correspondence and dynamic, authoritative correspondence in the work environment or relational correspondence. Rule of Business Communication In request to make correspondence viable, it is important to follow a few rules and standards. Seven of them are fundamental and applicable, and these are clear, finished, brief, obliging, right, thought to be, concrete. These standards are frequently called 7C for business correspondence. The subtleties of these correspondence standards are examined underneath: Politeness Principle: When conveying, we should build up a cordial relationship with every individual who sends data to us.

To be inviting and polite is indistinguishable, and politeness requires an insightful and amicable activity against others. Axioms are notable that gracious “pay of graciousness is the main thing to win everything”. Correspondence staff ought to consistently remember this. The accompanying standards may assist with improving courtesy:Preliminary considering correspondence with family All glad families have the mystery of progress. This achievement originates from a strong establishment of closeness and closeness. Indeed, through private correspondence these cozy family connections become all the more intently. Correspondence is the foundation of different affiliations, building solid partners of obedient devotion, improving family way of life, and assisting with accomplishing satisfaction (Gosche, p. 1). In any case, so as to keep up an amicable relationship, a few families experienced tumultuous encounters. Correspondence in the family is an intricate and alluring marvel. Correspondence between families isn’t restricted to single messages between families or verbal correspondence.

It is a unique cycle that oversees force, closeness and limits, cohesiveness and flexibility of route frameworks, and makes pictures, topics, stories, ceremonies, rules, jobs, making implications, making a feeling of family life An intelligent cycle that makes a model. This model has passed ages. Notwithstanding the view as a family and family automatic framework, one of the greatest exploration establishments in between family correspondence centers around a family correspondence model. Family correspondence model (FCP) hypothesis clarifies why families impart in their own specific manner dependent on one another ‘s psychological direction. Early FCP research established in media research is keen on how families handle broad communications data. Family correspondence was perceived as an exceptional scholastic exploration field by the National Communications Association in 1989. Family correspondence researchers were at first impacted by family research, social brain science, and relational hypothesis, before long built up the hypothesis and began research in a family framework zeroed in on a significant job. Until 2001, the primary issue of the Family Communication Research Journal, Family Communication Magazine, was given. Family correspondence is more than the field of correspondence analysts in the family. Examination on family correspondence is normally done by individuals in brain science, humanism, and family research, to give some examples models. However, as the popular family correspondence researcher Leslie Baxter stated, it is the focal point of this intelligent semantic creation measure making the grant of family correspondence special. In the field of in-home correspondence, correspondence is normally not founded on autonomous messages from one sender to one beneficiary, yet dependent on the dynamic interdependency of data shared among families It is conceptualized. The focal point of this methodology is on the shared trait of semantic development inside family frameworks. As such, producing doesn’t happen in vacuum, however it happens in a wide scope of ages and social exchange.

Standards are rules end up being followed when performing work to agree to a given objective. Hierarchical achievement relies significantly upon compelling correspondence. So as to successfully impart, it is important to follow a few standards and rules. Coming up next are rules to guarantee powerful correspondence: clearness: lucidity of data is a significant guideline of correspondence. For beneficiaries to know the message plainly, the messages ought to be sorted out in a basic language. To guarantee that beneficiaries can without much of a stretch comprehend the importance of the message, the sender needs to impart unmistakably and unhesitatingly so the beneficiary can plainly and unquestionably comprehend the data.>

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