Question

ONLY answer if you KNOW it. I am really tired of wrong answers. Also, I know you are only suppose to ask one question but Ive asked these questions separately multiple times and it has been wrong (I am running out of available questions). So please attempt to answer all of them if possible. Thank you so much!

1.)Date Jul-78 Apr-97 Oct-01 Jul-09 Apr-15 GDP Gap 1.13% 0.13% 1.05% 7 .17% 2.93% Inflation rate 6.68% 1.94% 1.76% 0.99% 1.29% Refer to the table above. Suppose the ideal or target inflation rate is 2%. Assuming policy makers place equal weight on the inflation gap and output gap, or w1-w20.5, in what years was the target Federal Funds rate greaterthan the nominal equilibrium Federal Funds rate? SELECT ALL YEARS THAT APPLY Hint: the nominal equilibrium Federal Funds rate is the real equilibrium Federal Funds rate +the target inflation rate 1978 1997 2001 2009 20152.) 2.) 3.)

4.)

An open market purchase of securities by the Federal Reserve leads to a(n) _____ in the money supply, a(n) ______ in interest rate and a(n) ______ in investment expenditures. (answers are either increase/decrease/or no change)

5.)

In the 1970s, the inflation rate peaked at over 10% in the United States. In response, the chair of the Federal Reserve, Paul Volcker, implemented low money growth (contractionary) monetary policy. However, the public did not believe that the low money growth policies would continue. Listen to more about this here.

How did the Federal Reserve, under the leadership of Paul Volcker, achieve credibility?

The Fed maintained a low money growth policy when households and firms were expecting low inflation.

The Fed maintained a high money growth policy when households and firms were expecting inflation.

The Fed reduced interest rates when households and firms were expecting high interest rates.

The Fed maintained a low money growth policy when real GDP was below potential.

6.)

Monetary policy can affect the level of output

in both the short run and long run.

only in the long run.

in neither the short run nor the long run.

only in the short run.

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Answer #1

Answer- Here is the answer of 4rth section

1) Increase

2) Decrease

3) Increase

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