How does a bank's borrowing reserves on the federal funds market differ from borrowing from the Fed?
Answer to relevant QuestionsHow did the Fed and government respond to the bank crash of 2007? To supply-siders, the key to any economic stabilization is managing aggregate supply. What kinds of policy do they advocate, and what out comes do they expect to achieve? In some instances, government spending may trigger a "crowding out" outcome that undermines the reason for the government spending. What is "crowding out" and how can government spending cause it? Is the level of government spending too high? How has it grown? How does it compare to government spending in other industrial economies? Some economists believe that the public debt may be detrimental to the economy's growth. Explain.
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