What is the discount rate, and how can the Fed use it to control the nation's supply of money?
Answer to relevant QuestionsOne way the Fed can increase the nation's money supply is by reducing the reserve requirement. Explain how this works. To illustrate, you can construct your own bank transactions and changes in the assets and liabilities of ...There are five mainstream schools of economic thinking on issues relating to what government can or cannot do with respect to stabilizing the economy. What are these schools and how do they differ on issues concerning ..."To rational-expectations economists, it makes no difference whether we think in terms of the short run or the long run: Government cannot reduce the rate of unemployment, period." Explain. Why is some of the federal government's spending on agriculture considered a transfer payment? What is the federal government's most important source of tax revenue? What are the state and local governments' most important sources of tax revenue?
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