What problems can inflation cause in an economy

Assignment Help Microeconomics
Reference no: EM131158362

The Fed's Policy Tools

The purpose of this assessment is to analyze how Fed can contain inflation with help of its policy tools.

Assessment Description:

Assuming that the Fed judges inflation to be the most significant problem in the economy and that it wishes to employ all of its policy instruments except interest on reserves, explain how the Fed should implement its three policy tools to contain inflation.

In your essay, focus on the following questions:

• What are the different policy tools the Fed uses to address significant economic problems?
• What problems can inflation cause in an economy?
• Which policy tool or combination of policy tools would work best to contain inflation?
• Does the policy tool or combination of policy tools differ in case of low inflation?

Submission Requirements:

Submit your response in a Microsoft Word document with the following specifications:

• Font: Arial; Point 12
• Spacing: Double
• Page length: 3 pages, excluding the APA title and Reference page
• Include an APA title page. Refer to the sample APA title page (please see attached).
• Cite the source in APA format in-text and on the Reference page.

Reference no: EM131158362

Questions Cloud

Elements of negligence : Luckily, you're not hurt, just really embarrassed. Can Wal-Mart be held liable for negligence in this case? Discuss all 4 elements of negligence, and the defenses to a claim of negligence, in your answer.
Sexual harassment lawsuit against employer : You have a co-worker that one day, to your surprise, walks up and kisses you. You turn and run straight to your lawyer, demanding that he file a sexual harassment lawsuit against your employer.
Identify any social economic and other demographic : Choose one of the following organizational identities; a metropolitan police force, a rural police force, a state prison system in a rural area, or a federal prison system in an urban area. Identify any social, economic, and other demographic and ..
Does the refugee situation influence the balance of payments : Prepare a position on this summary; that is, do you agree or disagree with the findings of the authors (provide supporting evidence by way of cited references)
What problems can inflation cause in an economy : What problems can inflation cause in an economy? Which policy tool or combination of policy tools would work best to contain inflation? Does the policy tool or combination of policy tools differ in case of low inflation?
Form of business ownership : What form of business ownership would you choose, and why? Be very specific about the form, and very specific about the criteria you used to choose that form, and why it's better than your other options given your goals for this business.
Form of business ownership : 3. A __________ is a form of business ownership where there are two or more owners, and the owners have unlimited personal liability.
Write notes on an aspect of the veterans affairs : Write notes on an aspect of the Veterans Affairs Medical Center, Emergency Room in Washington, DC that could be outsourced. Why might this be a good idea
Contrasts the two organizations : Research two companies, one that had an effective strategic plan and one that did not. Prepare an analysis that contrasts the two organizations, explaining how the effective strategic plan was beneficial. (This analysis can be in any form you choos..

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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