The federal reserve had to resort to non-standard methods

Reference no: EM13698322

The Federal Reserve had to resort to non-standard methods to try to stimulate the economy the last several years in part because:

1. it was no longer allowed to change the reserve requirement

2. inflation was too high

3. there were no longer any Treasury bonds to buy

4. the federal funds rate hit the zero lower bound.

Reference no: EM13698322

Questions Cloud

What role does expected price level play in the adjustment : Use the sticky wage theory of aggregate supply to explain what will happen to output and the price level in the long run. What role does expected price level play in the adjustment?

Under a situation of majority voting : How can a small special-interest group win, since the benefits flow only to a small group, under a situation of majority voting?

How many brands of wheat beer were rated : Review the SPSS output file ("Module 2 SPSS Output") for various ways of summarizing information for discrete (nominal and ordinal variables) and for continuous (interval and ratio) variables. Answer the following questions based on your observ..

Amount of equal annual end-of-year payments for each of year : An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the United States before the loan was fully repaid. At the end of three years,..

The federal reserve had to resort to non-standard methods : The Federal Reserve had to resort to non-standard methods to try to stimulate the economy the last several years in part because:

Demand lower money balances for every nominal interest rate : Suppose that changes in technology cause individuals to demand lower money balances for every nominal interest rate. Suppose the Fed does not adjust the money supply in response. Investigating first the money market and then tracing the effects to th..

Based on direct lines of authority from the top executive : An organizational form that is based on direct lines of authority from the top executive to the lowest level of employees is called

New business in exchange for ownership interest : Persons or organizations that agree to provide some funds for a new business in exchange for ownership interest or stock are called

A precise statement of the rationale for a business : A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a

User Account

All Pages