According to Ben Bernake, in normal times if the economy is growing too fast, what policy should the Fed undertake?
If the economy is growing too fast then the economy will be facing an inflation, to reduce the inflation in the market then the FED will reduce the money supply by increasing the discount rate, increasing the reserve ratio and selling the bonds in the market.
According to Ben Bernake, in normal times if the economy is growing too fast, what policy...
97. J6 the Federal Reserve felt the economy was growing too aggressively explain what action they might take through open market operations? Be sure to explain why.
Is Amazon growing too fast? Amazon hit the $1 trillion market capitalization mark last year. what market capitalization means and why it's important to understand about Amazon?
the economy is experiencing a recession and high unemployment a. Use an AD-AS model together with the Fed Funds market to represent ther short ran equilibrium in b. What types of monetary policy (i.e.. expansionary or restrictive) should the Fed implement? c. In implementing the policy you suggest. which actions (please give at least two actions) should the Fed take to achieve this policy? Explain how t he y policy would address this problem and the consequence of the monetar...
8. Using policy to stabilize the economy 8. Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. Shifts in aggregate demand are often the result of waves of pessimism...
what may result if administration of TPA is too fast or too slow
Use of discretionary policy to stabilize the economy Should policymakers use monetary policy, fiscal policy, or both in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy and the pros and cons of using these tools to lessen economic fluctuations. The following graph shows a hypothetical aggregate demand curve (AD), short-run aggregate supply curve (AS), and long-run aggregate supply curve (LRAS) For the economy in May 2020. According to the...
Monetary Policy attempts to manage the economy by targeting the Fed Funds interest rate and/or expanding the Fed’s balance sheet (BS). What are the main policy instruments the FED uses to expand its BS? Explain how each one would be used in practice to expand reserves.
According to the neoclassical theory of distribution, in an economy described by a Cobb Douglas production function, workers should experience high rates of real wage growth when a. marginal labor productivity is growing rapidly b. the capital stock is growing slowly c. the labor force is growing rapidly. d. labor productivity is growing slowly
2. Vietnam now has an economy that is growing strongly with low unemployment and rising living standards. What changes in economic policy have been responsible for this economic transformation? 3. The level of public corruption in Vietnam is high. Why is this the case? How do you think this affects Vietnam's economic performance? What should the government do about this?
How does the Fed currently conduct U.S. monetary policy? Your answer should involve all aspects of policy from tools to goals. Why does the Fed conduct policy as it currently does? For example, why does the Fed choose a particular tool? What are the limits of the Fed's ability to influence the economy?