What option does the central bank have to stimulate economy

Assignment Help Macroeconomics
Reference no: EM13186416

1. What is Keynesian economics? Explain how policymakers used Keynesian economics in response to the Great Recession. Be sure to include discussion about the types of fiscal and monetary policies that were used.

2. What is a long-run consequence of running persistent budget deficits? Why is it a problem? Provide reasons from the textbook or reasons discussed in the (2008) movie, I.O.U.S.A.

3. If conventional monetary policy can no longer lower interest rates, what option(s) does the central bank have to stimulate the economy? Provide an example of the Fed's actions listed in the textbook or from the October 30th FOMC press release.

4. If the economy is currently in a long-run equilibrium and the central bank increases the money supply, what effect does this have on the aggregate price level? Explain why it is important to insulate central bankers from political pressures in their conduct of monetary policy.

Reference no: EM13186416

Questions Cloud

Find the volume v of water in the bowl : Find the volume V of water in the bowl. (Consider two cases: one in which the ball is not completely submerged and the other in which it is.)
Find magazine article highlights a perfectly competitive sit : When thinking about the theory of the firm, shirking, and principle-agent problems, we can find analogous situations in our personal lives. Make a Power Point presentation (for sharing with the class) two personal situations to illuminate this con..
What should be the size of each repayment : What should be the size of each repayment if the loan is to be amortized at the end of the term? (Round your answer to the nearest cent.)
What should the price per pound of this mixture be : a grocer mixes together four pounds of peanuts costing $2 per pound with two pounds of walnuts costing $5 per pound. what should the price per pound of this mixture be?
What option does the central bank have to stimulate economy : If the economy is currently in a long-run equilibrium and the central bank increases the money supply, what effect does this have on the aggregate price level Explain why it is important to insulate central bankers from politic..
Compute the molar mass of hemoglobin : the osmotic pressure of this soluion was 0.00155 atm at 25 degrees celcius. calculate the molar mass of hemoglobin, which is a molecular compound and a nonelectrolyte.
How to verify that the equation is balanced : a Balanced reaction equation must have the same number of atoms of each element on both sides of the equation. to verify that the equation is balanced, count the otoms of each element on both sides of the reaction
How much will deposits in the commercial banks change : The Federal Reserve has just purchased $100 million in Treasury bills from commercial banks. b. If the public holds a fixed amount of currency (so that all loans create an equal amount of deposits in the banking system), the minimum reserve ratio ..
State account for the trend of melting points : How do you account for the trend of melting points in this series of acids? octanoic (caprylic) C8H16O2 at 17.5 degrees C, decanoic (capric) C10H20O2 at 31.5 degrees C, dodecanoic (lauric) C12H24O2 at 44 degrees C, tetradecanoic (myristic) C14H28O..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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