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describe all the ways that a rise in stock prices affects aggregate expenditure do the same for a rise in housing
suppose that bond traders expect an increase in the federal funds rate but the fomc surprises them by keeping it
suppose the federal funds rate is 3 percent bond traders expect it to remain at that level for 3 months and then rise
interview a few people who are not economists but who are old enough to remember the 1970sask them what caused the high
from the text web site follow the link to the site of the federal reserve bank of st louis also see the guide to st
the text web site has us data on output unemployment and inflation from 1960 through 2010 along with estimates of
the data in figure suggest an unemployment coefficient of approximately -10 in the phillips curve that is the phillips
the united states was on a gold standard from 1879 to 1914during that period the average inflation rate was about zero
suppose that expected inflation is the average of inflation over the two previous yearsnbspa write the equation for the
suppose the economy starts with output at potential and constant inflation in 2020 oil prices jump up initially the fed
suppose again that oil prices increase this has two effectsa firms costs jump up andb because more of consumers income
suppose oil prices jump up and the fed is completely accommodative it keeps the real interest rate constanthow must the
suppose the economy starts with output at potential then a supply shock occurs oil prices rise sharply the fed is
suppose the fed raises the real interest rate and consumer confidence falls around the same time as occurred in
suppose a country bans trade with other countries so net exports are always zerohow would this affect the slope of the
suppose the growth rate of potential output rises the behavior of the output gap the fluctuations of output around
suppose potential output grows 2 percent per year and the natural rate of unemployment is constant at 6 percent in 2020
assume the monetary base is 100 the currency-deposit ratio is 05 and the reserve- deposit ratio is 01a calculate the
suppose the fed wants to reduce the money supply by 100should it buy or sell government bonds how much should it buy or
in the text we ignored travelers checks in deriving the money multiplier suppose we are more careful and include
suppose the discount rate is below the federal funds rate and banks can borrow as much as they want from the fed how
redo given question but do not assume the monetary base is constant instead answer each part of the question assuming
suppose that foreigners start holding more us currency for a given interest rate americans dont change their holdings
lets change the example of capital requirements in given tableassume that melvins bank holds 40 in treasury bonds
suppose melvins bank can make a bet on derivatives that has a two-thirds probability of earning 20 and a one-third