Inflationary pressure is growing problem for the economy

Assignment Help Business Economics
Reference no: EM131171790

Inflationary pressure is a growing problem for the economy. Therefore, the Federal Reserve decides to pursue a policy to reduce the inflationary pressure. Which policy changes by the Fed would reinforce each other to achieve that objective? A. Injecting reserves into the financial system and raising the discount rate B. Selling government securities and lowering the discount rate C. Buying government securities and lowering the discount rate D. Buying government securities and lowering the reserve ratio E. Withdrawing reserves from the financial system and raising the discount rate

Reference no: EM131171790

Questions Cloud

What is the most important factor a company should consider : A low involvement purchase decision is a routine purchase that poses little risk to the consumer. Name a product that you purchase that is a low involvement purchase, such as trash bags. As the marketing manager for a company that sells the produc..
Assets liabilities cash : Assets Liabilities Cash $200,000 DD $2,000,000 RR = $250,000 Dep at Fed $100,000 19. This bank can safely expand its loan portfolio by A. $150,000 B. $200,000 C. $50,000 D. $0 E. Impossible to determine based on the info provided
Find appropriate values for the temperature : Find appropriate values for the temperature of the river bed, and of the water and air. For this problem, you can assume that the water has the same temperature at every depth.
Explore funding from international lending institutions : Explore whether or not funding from international lending institutions like the World Bank and the IMF are helping or hindering the social, economic, or political development of the country that you have selected.
Inflationary pressure is growing problem for the economy : Inflationary pressure is a growing problem for the economy. Therefore, the Federal Reserve decides to pursue a policy to reduce the inflationary pressure. Which policy changes by the Fed would reinforce each other to achieve that objective?
Give a polynomial example showing that it is not sufficient : The property that the vector on the right-hand side of a differential equation points into the interior of the first orthant is obviously a necessary condition for negative cross-effects to be absent. Give a polynomial example showing that it is n..
Assume the government purposely incurs budget deficit : Assume the government purposely incurs a budget deficit that is financed by borrowing. As a result, interest rates rise and the amount of consumption spending declines.
Introduction and conclusion within the nine slides : Include an introduction and conclusion within the nine slides. In addition, include speaker's notes demonstrating synthesis of the elements listed below. Your presentation and speaker's notes must cover the following:
Enormous amount of content : Social networking has opened the doors to people around the world and provides an enormous amount of content (both good and bad) to consumers and customers and to suppliers. How has social media changed the way companies interact with consumers an..

Reviews

Write a Review

 

Business Economics Questions & Answers

  How is momentum justified as common risk factor

What are the economic justifications of the size premium? In factor pricing models like the intertemportal capital asset pricing model (I-CAPM) or arbitrage pricing theory (APT), it is assumed that exposure to one of these factors represent exposure ..

  Identify the substitution effect of the price change

Consider three agents with the respective utility functions: uA(x,y)= xy (MRS(x,y)= y) x uB (x, y) = x + y (perfect substitutes) uC (x, y) = min{x, y} (perfect complements) Assume each agent has income $120 and initially faces the prices px = $1 and ..

  Describe the the views of luddite

Please describe the the views of a Luddite and discuss any similarities between the Luddites of the 19th century and the neo-Luddites of today. What objections do they have to technology?

  Borrower with project that has rate of return

Suppose that you are a borrower with a project that has a rate of return of 6.8%. You submit a bid to borrow $1,000 at an interest rate of 5%, and a lender accepts your offer. After you fund your project and pay back your loan, what is your gain or l..

  Consumers pulling money out of their checking accounts

What effect, if any, would consumers pulling money out of their checking accounts and putting it into home safes have on investment, interest rates, and GDP?

  Culmulative cash flow and conventional payback period

Cute Camel Company is a small firm and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Delta's expected future cash flows. How much value does the discounted payback period metho..

  Explain the purpose of each performance measure

A recession? How would your decision change if your firm's plant and equipment needed to be replaced? What if plant and equipment were new?

  Briefly summarize the outcome as to hours of work

Steve Slacker is age 25, has an MBA degree, but is not working. Instead he is living at a major ski area, using the $2,000 per week he gets from his wealthy family. Construct a single income-leisure choice graph to show Steve’s situation before and a..

  According to the fisher effect

According to the Fisher effect, if the "real" rate of interest in a country is 4 percent and the expected annual inflation is 9 percent, what would the "nominal' interest rate be? A.5 percent B.13 percent C.9 percent D.36 percent E. 2.25 percent

  Qassume that the economy is in a long run equilibrium where

q.assume that the economy is in a long run equilibrium where the inflation rate is greater than the optimal rate i as

  Product promotion strategy and standardized product

An industry which has no barriers to entry, no product promotion strategy, a standardized product, and a very large number of firms operating within it, is said to have:

  Would you recommend they hire another employee

Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd