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The Federal Reserve has traditionally conducted open market operations through the purchase and sale of government bonds.
One of the most important simplifying assumptions made by economists when developing the model of supply and demand is the following:
If a nation desires to have stable prices (or low inflation), why not simply pass a law that prohibits firms from changing prices?
Oil and its effect on the economy - With rising oil/energy prices today, how is it affecting the economy?
Should the Fed increase or decrease the money supply?
Question: What are the characteristics of expansionary and contractionary monetary policy?
Question: Do you think the current Fed monetary policies are effective?
Suppose the Fed decides it needs to pursue an expansionary policy. Assume people hold no cash, the reserve requirement is 20%, and there are no excess reserves.
What is the ultimate change in demand deposits in the entire banking system?
If the Federal Reserve were to engage in an activist stabilization policy, in which direction should they move the money supply in response to the following:
How would a fall in U.S. interest rates affect Canadian investment, saving, net foreign investment, and the Canadian real exchange rate?
You have been asked by the Presidents Economic Advisors to sit on a committe considering fiscal policy to address the economy's current problem of slow growth.
How does this type of monetary and fiscal policies influence other interest rates?
What is the current thrust of monetary policy. How do economic conditions affect the actions being taken by the Feds.
Could the Federal Reserve conduct monetary policy through the purchase and sale of stocks on the New York Stock Exchange?
Suppose the Fed decides it needs to pursue an expansionary policy.
How do you assess the current condition of the economy? What are the strength and weaknesses?
Some economists believe that the Federal Reserve should follow strict rules for the conduct of monetary policy.
Question: Define opportunity cost and explain its relationship to economic reasoning.
While Keynes revolutionized economic thinking in the 1930s, his theories were subsequently eclipsed by new ideas such as monetarism and supply- side.
What are the impact of domestic monetary policy on interest rates, exchange rates and foreign trade?
Suppose the Federal Reserve purchased gold or foreign currency. How would this purchase affect the domestic money supply?
Question 1. What is monetary policy? What are the four actions involved in implementing monetary policy?
Employee innovation and productivity achievements are rewarded with certificates or token prizes. Are these rewards appropriate?
Does it make any difference if the Fed buys bonds from a bank or an individual?