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One of the functions of the Federal Reserve System is to control inflation. How do you think the FED is doing with the inflation fight? Do you see any risks head?
Another function of the Federal Reserve System is ensure the stability of our financial system. Some economists estimate that the FED has pumped 20 to 30 Trillion dollars into the system in the last 5 or 6 years in an attempt to prop-up our struggling banks, insurance companies, and the Federal government. What do you think of this? What suggestions would you offer?
Illustrate the maxmium so and so would pay for insurance.
The Bank of England has switched from interest rate cuts to "quantative easing" This policy involves buying bonds from commerical banks in the hope that these institutions will again lend in vast quantities to businessess and individuals after sit..
You are the administrator of hospital and situation has been brought to your attention.
1. suppose that a nations production possibilities are as follows possibilitiesfood millions of tons per yeartractors
Elucidate impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run.
Which bond would you expect to pay a higher interest rate? Explain why.
Utilize an elasticity concept to elucidate each of the following observations.
Draw a graph illustrating this market and in your graph identify the equilibrium price, equilibrium quantity, all intercepts, the area that is CS and the area that is PS.
A married couple is considering purchasing a new sport utility vehicle (SUV) 5 years from now. They expect the SUV to cost $32,000 at the time of purchase.
What was the rate of inflation for the month? How does that rate of inflation compare with the rate in the previous month?
What does a contractionary gap imply about the actual rate of unemployment relative to the natural rate. What must happen to real and nominal wages in order to close a contractionary gap.
Profit-maximizing behaviour on the part of firms explains why the short-run aggregate supply curve is upward-sloping. Is this statement true, false, or uncertain? Explain your answer.
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