How economy is experiencing a sharp and prolonged trend

Assignment Help Microeconomics
Reference no: EM13242537

Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and prolonged inflationary trend.

1. What changes in (a) the reserve ratio, (b) the discount rate, and (c) open market operations would you recommend?

2. Explain in each case how the change you advocate would affect (1) commercial bank reserves, (2) the money supply, (3) interest rates, and (4) aggregate demand.

3. Construct graphs of the money market, bond market, and AD-AS model to illustrate.

Reference no: EM13242537

Questions Cloud

The christian movement advocating concrete political action : The Christian movement advocating concrete political action to help the poor is called. The Christian movement advocating concrete political action to help the poor is called. Reforms within the Roman Catholic Church during the era of the Protestant ..
State lewis structure for a nitrate ion : Lewis Structure for a Nitrate Ion (NO3-1). How many possible resonance structures are there for the nitrate ion
Find the maximum acceleration achieved by the sphere : Two plastic spheres, each carrying charge uniformly distributed throughout its interior, are initially placed in contact and then released, Find the maximum acceleration achieved by the sphere of mass 55.0g
Explain the formal charge for the central atom nitrogen : Lewis Structure for a Nitrate Ion (NO3-1). Assign the formal charge for the central atom, Nitrogen. What is that formal charge
How economy is experiencing a sharp and prolonged trend : Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and prolonged inflationary trend. What changes in (a) the reserve ratio, (b) the discount rate.
The first four books of the new testament are called : Which of the following Christian denominations is a spirit-oriented movement? The first four books of the New Testament are called.
How long does the satellite take to complete one orbit : What is the tangential velocity of a satellite in a circular orbit 300km above the surface of the Earth, How long does the satellite take to complete one orbit
Payments of principal over the life of the bonds : • How much is debt service funds for payments of principal over the life of the bonds?
Define the standard molar enthalpy of formation of n2o : Which of the following chemical equations corresponds to the standard molar enthalpy of formation of N2O

Reviews

Write a Review

Microeconomics Questions & Answers

  What are the equilibrium rent and number of rooms?

What are the equilibrium rent and number of rooms? If the college puts a rent ceiling on rooms of $650 a month, what is the rent and how many rooms are rented?

  What defensive open market operation will manager undertake

If the manager of the open market desk hears that a snowstorm is about to strike New York City, making it difficult to present checks for payment there and so raising the float, what defensive open market operations will the manager undertake?

  How can bluestars total costs fall by adding more aircraft

An article in BusinessWeek warned of the dangers of deflation as the collapse of numerous Asian economies was creating worries that Asia might try to "export its way out of trouble" by oversupplying everything from automobiles to semiconductors.

  What happens to the rental prices in the suburbs

A central city imposes a rent control law that places a binding ceiling on the rent that can be charged for an apartment. The suburbs of this city do not have aren't control law. What happens to the rental prices in the suburbs and to the equilibr..

  What you expect to happen to the number of firms

Consider a perfectly competitive market. Analyze and explain in detail using graphical tools to show what you expect to happen to the number of firms and firm profitability in the short run and long run a) if demand for the product falls and b) if..

  What is the minimum efficient scale in this industry

What is the long-run equilibrium price in this market? Explain intuitively, in your own words, why this is the long-run equilibrium. What is the long-run market equilibrium quantity?

  Write the labor content of the commodities on the price sign

Doesn't the labor theory of value imply that people should write the labor content of their commodities on the price signs instead of amount of money? How would you answer your friend?

  Describe the model of consumer buyer behavior

Buyer behavior is at the core of marketing. All marketing programs need to begin with an understanding of why and how consumers buy what they do. If no one purchases a company's product or service, it will quickly go out of business.

  Aa-dd diagrammatic analysis

Demonstrate how an increase in personal and federal income taxes ultimately affects Bank of Canada's balance sheet.

  How to continue producing at the current output level

A firm is currently producing in the elastic portion of its demand curve. What course of action do you recommend for it assuming it wants to raise revenue Continue producing at the current output level

  What may affect productivity over the short and long term

Terrorist attacks foster instability and may affect productivity over the short and long term. Do you think the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon affected short- and/or long-term productivity in the U..

  Analyze major barrier for entry and exit in airline industry

Analyze the major barriers for entry and exit into the airline industry. Explain how each barrier can foster either monopoly or oligopoly. What barriers, if any, do you feel give rise to monopoly that will allow the government to become involved t..

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