Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
This graphs the federal funds rate since1995, the shaded regions correspond to U.S. recessions.
a) Explain why the Fed decreased the federal funds rate during the last two recessions.
b) As you can see from the graph, the Fed raised the federal funds rate in 2004 up to 2006. Again, explain what might have motivated the Fed to act in such a way.
c) As you can also see from the graph, the federal funds rate has been virtually zero since 2009 (with only a small uptick recently which we can ignore here). The Fed would have liked to decrease the rate further but it wasn’t able to do so because the rate cannot become negative. In this situation, the Fed had to resort to other tools to implement its monetary policy objectives. Briefly mention some of these tools.
Suppose Janet sells papayas at a perfectly competive market in Tailand. While her average total caost reaches a minimum level of 43 her minimum average variable cost is $2. At what price will Janet reach the equilibrium level Will she sell any papaya..
What is the process by which a recessionary gap closes itself? Explain. Why might this self-correcting mechanism work slowly in the face of a recessionary gap?
What is the main goal of policymakers in regards to the business cycle?
What happens to money supply and interest rates in general if Federal Reserve is a net seller of government bonds.
What is the marginal cost per bushel of apples produced? If the market price of a bushel of apples is $5.50, and is unaffected by the farmer’s production decision, then the marginal revenue of a bushel of apples is $5.50. In that case, how many bushe..
Based on discussions surrounding the controversy over the value of the Chinese yuan in foreign currency markets, is China still using central bank foreign exchange policy to maintain the value of the yuan?
The Constant Elasticity of Substitution function. Determine the returns to scale of this production function. Find σ, the elasticity of substitution. Express K/L as a function of w/r. How does the relationship between K/L and w/r change when ρ chang..
Draw the appropriate graph assuming that the economy is operating above full employment. Assuming the aggregate demand excess is $1328B and MPC is .87, calculate the amount of desired fiscal restraint. Which type of government intervention (from scen..
Explain how each of the following developments would affect the supply of money, the demand for money, and the interest rate. Illustrate your answers with diagrams.
Suppose a wage increase from $25 to $27 an hour increases the number of job applicants from 52 to 66. Illustrate what is the price elasticity of labor supply.
A firm that acquires a substitute product can reduce inter-product cannibalization by
Mexican interest rates are normally substantially higher than U.S. interest rates. a. What does this imply about the inflation differential (Mexico inflation minus U.S. inflation), assuming that the peso interest rate is the same in both countries? D..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd