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A: * ANSWER :- From the given information the answer is provided as below
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A:
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A:
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Please Answer:
4- Keynesian interest rates channel is not the one among monetary tranmission mechanisms.
True / False
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- You are employed at an Economics consulting firm called Eco Xcel. You have been approached bya client who read the article below entitled, “Another big hike raises South African interest ratesnear pre-Covid levels” and who has very limited understanding of monetary policy and how itworks. He has asked you to write a report that provides some clarity on Monetary Policy in thecontext of the South African economy. Another big hike raises South African interest rates near preCOVID levels. JOHANNESBURG (Reuters) -South Africa’s central bank delivered another big interest rate hike onThursday, taking its main lending rate back near pre-COVID levels as it battles to bring inflationback to target.The South African Reserve Bank (SARB) raised its repurchase rate by 75 basis points (bps) to6.25%, in line with the forecast of the majority of economists polled by Reuters. The rand pared gains against the U.S. dollar after the decision was announced, as some tradershad positioned for a larger…How do the monetary policy tools of the European System of Central Banks compare to the monetary policytools of the Fed? Does the ECB have a discount lendingfacility? Does the ECB pay banks an interest rate ontheir deposits?Price stability: Suppose you are the head of the central bank and your mandateis to maintain the price level at a constant value. Explain what you would doto the money supply in response to each of the following events:(a) Real GDP increases by 4% during a boom.(b) Real GDP declines by 1% during a recession.(c) Real GDP is growing at 3% per year.(d) Te velocity of money increases by 2%.(e) Te velocity of money declines by 1%.
- How does high inflation lead to a recession in the country? Explain the role ofthe Government and the Central Bank to address the economic recessionproblem by using appropriate fiscal and monetary policies. Are there anypotential problems with such policies?( Answer in 1000 words)How can forward guidance as a tool of the central bankimpact the policy instrument, intermediate targets, andgoals?Many economists are worried that a high level of budget deficits may lead to inflationary monetary policies inthe future. Could these budget deficits have an effect onthe current rate of inflation?
- A6 Explain, using diagrams, how keynesian monetary transmission works if there is a decrease in money supply.Discuss the similarities and differences between monetary policy and fiscal policy as a tool toregulate an economy? no referance material and can you answer me as soon as possibletrue, false or uncertain: Suppose a monetary authority increases the supply of money. This change will have more effect on spending behaxiout if the demand curve for money is more interest rate responsive than if it is less interest rate responsive.
- How would an unexpected change in the equilibriumreal fed funds rate be an argument against using aTaylor rule for monetary policy implementation?What should be the optimal monetary policy in the UK in the short and medium run? Make forecasts of what monetary policy will do and also forecasts of GDP growth and primary fiscal defcits, give a sovereign debt sustainability analysis. Calculate the trajectory of sovereign debt to GDP for the UK based on these forecasts.The monetary transmission mechanism can be depicted in the form of a graphor using symbols. 3,1 Explain, with the aid of symbols, the monetary transmission mechanism wheninterest rates increase(Note: Prices and wages are variable.) Q.3.2 Explain, using the AD‐AS model, how the South African Government can usefiscal policy as a tool to recover from the negative effects of this COVID‐19pandemic. Your answer must include the following: The description of the type of fiscal policy required; An explanation of how the implementation of this tool will work their waythrough the economy to achieve the desired effect; The AD‐AS graph showing the implications of your recommendations.
