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1. Discuss the pros and cons of central banks setting policy based on rules as opposed to setting policy based upon the discretion of policymakers at each policy meeting.
2. Review the money-growth rules discussed in Chapter 18 to determine which rule you believe is the most viable. Explain your rationale.
3. Argue for or against using the Taylor Rule to guide economic policy. Present precise examples to support your response.
4. Determine the impact on the economy if the central bank in U.S. used inflation targeting. Explain your rationale.
The impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
Explain how the MAS have successfully used exchange rate policy to achieve price stability for the last two decades.
What if the pollution invades Baker's home and harms her health
The law of demand states that other things equal
Why the short-run demand for gasoline is less elastic than the long-run demand, when the price of gasoline rises, people immediately cut back on unnecessary trips.
What steps can Congress and state legislatures take to alleviate a serious national shortage of skilled providers. Research suggests medical errors have been linked to inadequate staffing.
The benefit of cutting down a forest is $1 million now. the environmental cost of that harvest is $10/year forever.
A large school of sharks is reportedly seen by beach-goers at the beaches of Melbourne.
Challenge of any merger that raises the HHI by 100+ points in a market where the HHI is above 1800 before the merger.
Caught up in broad social and economic disaster that swept the Mediterranean basin during the twelfth century BCE, what seems to have happened to the civilization of people.
Explain and show graphically the effect on the supply and demand for Bonds in a deflationary period. What is the effect on interest rates and the quantity of bonds.
In economic terms, when the wage rate increases we sometimes see the number of hours worked by individuals decrease now.
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