Suppose that you are a member of the board of governors of, Microeconomics

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Suppose that you are a member of the board of governors of

Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and prolonged inflationary trend. What changes in

A. the reserve ratio

B. the discount rate

C. open market operations would you recommend?

Explain in each case how the change you advocate would affect commercial bank reserves, the money supply, interest rates, and aggregate demand.

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Microeconomics: Suppose that you are a member of the board of governors of

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