Interest rate target in the federal funds market
Problem: When the economy is close to or at full employment why is it difficult for the Fed to decide whether or not to change its interest rate target in the federal funds market?
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Write a 700-1050 word paper on the U.S. Federal Reserve's monetary policy o Define the purpose and function of money o Explain how the central bank manages a nation's monetary system.
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What is a government budget deficit? How does a federal budget deficit affect the economy? How does it affect the level of investment and interest rates? How does it affect the individual consumer? Give at least three examples in your response.
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Why do economists attempting to forecast short run future changes in real GDP and employment look closely at data on business inventories and unfilled orders?
Explain why the Aggregate Supply curve becomes increasingly steeply sloped at levels of RGDP near "full employment" and becomes especially steeply sloped beyond "full employment" RGDP.
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