Fight unemployment and close a recessionary gap the fed

Assignment Help Business Economics

Reference no: EM13836581

Fight unemployment and close a recessionary gap the fed is

A. increases employment, which increase real GDP

B. stimulates a aggregate supply by lowering the federal funds rate which increase potential GDP

C. Increase bank reserves, which banks use to make new loans to businesses which increase aggregate

D. Stimulates aggregate demand by lowering the federal funds rate, which increase the quantity

Reference no: EM13836581

Questions Cloud

What would be the terms of trade : Assume that country A can produce a unit of good X with 1 labor hour and a unit of good Y with 3 labor hours. Country B can produce a unit of good X with 2 labor hours and a unit of good Y with 8 labor hours. Labor is the only resource used. What wou..

Two firms produce in equilibrium : Consider a Stackelberg competition with one leader and multiple followers. All products are homogeneous. Marginal cost for all firms is zero and all products are homogeneous. If the leader produces a quantity of 6 units how much would each of the oth..

Australia commercial law : Question related to Australia Commercial Law Fresh Ltd need to raise finance for the expansion of its fresh food business. it is considering two options. 1 a pubic issue of redeemable preference shares 2 a loan from Strategic Finance Ltd

The fed choice of monetary policy strategy : The fed choice of monetary policy strategy is

Fight unemployment and close a recessionary gap the fed : Fight unemployment and close a recessionary gap the fed is

Cournots game with many firms : Consider Cournot’s game in the case of an arbitrary number n of firms; retain the assumptions that the inverse demand function takes the form (56.2) and the cost function of each firm i is c(q) = (c/2) *q^2, with c

Cross-cultural teams successful at pet gourmand : What does it take to make cross-cultural teams successful at PetGourmand

Explain parts of equation for a nominal rate of interest : Assuming the same risk structure and term to the maturity of the investments, if the yield on a Treasury Inflation Protected Security (TIPS) is 0.28 percent, and the yield on a regular Treasury Bond is 2.73 percent, then: Write down and explain parts..

Current Default Risk Premium on the Corporate Bonds : Assume that 4-year Treasury Bonds currently have a nominal yield of 6.2%, and 4-year Corporate Bonds have a nominal yield of 8.5%. Further assume that Maturity Risk Premium (MRP) on all 4-year contracts currently is 1.3%, and Corporate Bonds currentl..

User Account

All Pages