Discuss the interest rate that you are trying to raise

Assignment Help Macroeconomics
Reference no: EM131513209

Assignment: USA Macro Economic

• Do you feel that the interest rate that is "set" by the Federal Reserve is too low?

- Provide an argument why interest rates cannot go lower - and need to be raised during the next Board of Governors meeting.
- How would you advise the board, as Chairperson, to go about implementing a raise in the interest rate?
- Explain and discuss this interest rate that you're trying to raise.

• What are the feedback effects of this interest rate increase on the US economy?

- Look at this in terms of the Aggregat Expenditure Equation - C(Household Consumption), I(Investment), G(Government spending), NX(Net Exports).

Reference no: EM131513209

Questions Cloud

Construct a strategic plan that is related to health care : Construct a 3 to 5-year strategic plan that is related to a specified health care organization of your choice. The organization may be not-for-profit or for-pro
How do they communicate with the public : You will contact this organization and try to gather information about their communicational strategies and tactics: how do they communicate with the public?
Do key indicators cover everything : Do Key Indicators Cover Everything - Since operational failures arise from risks related to people, process.
Analyze the role of innovation in executing change strategy : Analyze the role of innovation in executing change strategies. Examine how technology facilitates the implementation of change in today's workforce.
Discuss the interest rate that you are trying to raise : Explain and discuss this interest rate that you're trying to raise. What are the feedback effects of this interest rate increase on the US economy?
How many giga-factories does elon musk : How many giga-factories does Elon Musk? How big is Musk's solar and storage battery giga-factory, nearing completion this year?
Discuss how the vat system works : Discuss how the vat system works - List and explain the vat supply categories, provide examples in each category
How does sunita narin characterize the role the us : How does Sunita Narin characterize the role the United States is in leading the way toward low carbon urbanization in developing countries like India.
Calculate the other operating expenses for 2014 : Explain the possible change that took place in the financing activities over the three- year period and calculate the other operating expenses for 2014.

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