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The Federal Reserve System [Fed] has a huge measure of political independence. The Board of Governors, appointed through the United States president and confirms by the United States Senate, serve fourteen year terms. In addition, the Federal Open Market Committee includes representatives of private banks in the Federal Reserve System.What are the best targets for the Fed? Should it lean toward restraint or toward expansion? Why?
Find out the income elasticity of demand. Elucidate whether gas is a normal or inferior product.
One of the major problems in macroeconomics is disagreement in the debate over policy activism versus policy rules.
Compute the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase.
In what direction would the shift in labor supply and demand go. Illustrate what would be its effect on the equilibrium of the labor market.
Illustrate what policies have been proposed or implemented to address the problem your describe.
Recently, a troubled bank borrowed $800 million from the Federal Reserve. Describe the impact this event had on the monetary base.
Suppose that the assumption in key concept are satisfied. Show that X i is a valid instrument. That is, show that key concept 12.3 is satisfied with Z i = X i .
Illustrate what extent should managers base their plans on the assumption that customers and suppliers are self-interested.
Illustrate the main kinds of information and data needed in order to evaluate a capital.
Has the time come for government to abolish rent controls and minimum wage? What do you think? Do both rent controls & minimum wage laws achieve their intended purposes?
Discuss the role of the Federal Open Market Committee in conducting monetary policy.
Explain how the distinction between expected and unexpected inflation is important to the distributional effects of inflation.
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