Intermediate target variable of monetary policy

Assignment Help Macroeconomics
Reference no: EM1314371

Explain the three criteria that are used to determine whether a particular variable is a worthy candidate to be selected as an intermediate target variable of monetary policy.  Now, on the basis of these criteria, evaluate the following as potential intermediate target variables:

a) The 90-day Treasury bill yield

b) The real federal funds rate

c) The real 30-year U.S. government bond yield

d) The non-borrowed monetary base

e) The growth rate of M2

f) Excess reserves

Reference no: EM1314371

Questions Cloud

Aggregate supply curve-equilibrium level of output : Explain what happens to the nation's aggregate supply curve, the short-run equilibrium level of output, and the price level if:
Cash flows from operating activities and net income : Cash flows from operating activities and Net income will be increased or adjusted upward and Net income will be decreased or adjusted downward.
Constructing confidence interval : Construct a 95 percent confidence interval for the population mean. Is it reasonable that the population mean is 28 weeks? Justify your answer.
Explain current market price of bond : Explain Current market price of bond and What is the current market price of the bond
Intermediate target variable of monetary policy : Explain the three criteria that are used to determine whether a particular variable is a worthy candidate to be selected as an intermediate target variable of monetary policy.
Purpose an income statement through gross profit : Purpose an income statement through gross profit and Prepare an income statement through gross profit for the year ended December 31, 2007
Computation par value of bonds : Computation par value of bonds and What is the bond's annual coupon interest rate
Confidence interval to estimate the population proportion : Would it be reasonable to conclude that the 5 percent of the employees are not able to pass the random drug test?
Explain factors which influencing excess reserve : Analyze the factors that influence the banks desired excess reserve ratio, r e . What would happen to the magnitude of r e if:

Reviews

Write a Review

Macroeconomics Questions & Answers

  Relationship between the outputs and the unemployment rate

When and why were the inflation and unemployment rates negatively correlated? When and why were the inflation and unemployment rates positively correlated?

  Expenditure on education from macro perspective

How might there be increase in total spending on a child's education in response to providing a fixed level of education?

  Compute the real mortgage interest rate

What is real mortgage interest rate in 2001, 2002, 2003 and 2004? What are the values in 2000 dollars of the Nancy's monthly mortgage payments in the year of 2001, 2002, 2003, and 2004?

  Computation of parity price

If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.

  Explanation of augmented phillip curve model

Using the dynamic augmented Phillip's Curve model (Y/PC/MR), demonstrate the effects of the Following changes. Show both the short-run and long-run effects.

  True or false questions about incurring loss and pure

Indicate whether each of the following statements is true or false and explain why.

  Graphical implications of open market purchase

Graphically illustrate the impact of an open-market purchase by the Federal Reserve on the equilibrium interest rate using the theory of liquidity preference and the market for real money balances. (Be sure to label:

  Calculation of optimal price

What price and quantity will the monopolist produce at if marginal cost is a constant$4 ? Compute the dead weight loss from having the monopolist produce, rather than the perfect competitor

  Labour mobility and unemployment rate

Discuss how labor market mobility affects the unemployment rate.

  Benefits of decentralization of manufacturing firm

Global Widgets Corp is a manufacturing company that builds standardized galvanized metal benches for sports arenas and stadiums-Do you think one of these firms would be more likely to benefit from a de-centralized decision making organizational arc..

  Explain import dependency ratio

For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.

  Explaining capital and labor goods

The advent of the one man bus involved more capital equipment: an automatically operated coin box and door control device - to name two of the capital goods that replaced the conductor."

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