1. List and describe four primary functions of the central bank (In the case of the...
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1. List and describe four primary functions of the central bank (In the case of the US it is the federal reserve system also known as the fed) 2. What is the equation of exchange? What are the variables, which are in it, and how do they relate to each other? 3. Explain what the Fed should do to remove a recessionary gap. Illustrate the effect of its policy with an AD/SRAS/LRAS graph. Make sure to mention all the tools of monetary policy. 4. Explain what the Fed should do to remove an inflationary gap. Illustrate the effect of its policy with an AD/SRAS/LRAS graph. Make sure to mention all the tools of monetary policy. 5. You have the assignment of making a recommendation to the Chairperson of the Fed during a period of persistent, high inflation. What would you suggest restoring stable prices? 1. List and describe four primary functions of the central bank (In the case of the US it is the federal reserve system also known as the fed) 2. What is the equation of exchange? What are the variables, which are in it, and how do they relate to each other? 3. Explain what the Fed should do to remove a recessionary gap. Illustrate the effect of its policy with an AD/SRAS/LRAS graph. Make sure to mention all the tools of monetary policy. 4. Explain what the Fed should do to remove an inflationary gap. Illustrate the effect of its policy with an AD/SRAS/LRAS graph. Make sure to mention all the tools of monetary policy. 5. You have the assignment of making a recommendation to the Chairperson of the Fed during a period of persistent, high inflation. What would you suggest restoring stable prices?
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1 The four primary functions of the Federal Reserve System the Fed are 1 Conducting monetary policy The Fed manages the nations money supply and seeks ... View the full answer
Related Book For
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
Posted Date:
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