c) What is likely to be the effect of such restrictive monetary
policy on the budget...
c) What is likely to be the effect of such restrictive monetary
policy on the budget balance for the government and on national
debt if there are no other policy changes?
1. When does the Fed use a stimulative monetary policy and when
does it use a restrictive-monetary policy? What is a criticism of a
stimulative monetary policy? What is the risk of using a monetary
policy that is too restrictive?2. Should firms invest in money market securities? (elaborate on
your answer)3. Should financial institutions invest in junk bonds?(elaborate
on your answer)4. Does governance of firms affect the prices of their
bonds?(elaborate on your answer)
Evaluate Monetary Policy and how it works in inflationary vs.
recessionary times . (Expansionary and restrictive...be
specific)
Be sure to also
include the following:
What policies did
Jerome Powell appear to support? How do they seem to match the
direction that Janet Yellen had taken in the past?
Summarize your
thoughts about any major bank merger that may have occurred over
the last 10 years; for example, Wachovia and Wells Fargo ...access
any web information for this but you must...
If the Federal Reserve engages in expansionary monetary
policy:
What will be the effect on money demand, money supply, and
interest rates? Please explain.
What will be the effect on planned investment, AE, and GDP?
Please explain
In the short-run: What will be the effect on AD and SRAS? What
will be the effect on prices? Please explain.
Illustrate and explain what will be effect of an expansionary
monetary policy on output and price in short run and long run,
under fixed vs floating ecchange rate regime and perfect capital
mobility? Use IS-LM and AD-SRAS-LRAS diagrams to answer this
question.
Monetary Policy in Keynesian Models of the Macroeconomy
(c) Part of the challenge of monetary policy is that the level
of potential output is not observed. Assume that the economy is in
an equilibrium with output equal to potential output. Suppose the
latest economic news leads the central bank to incorrectly raise
their estimate of potential output. Use the AD-AS model to describe
what will happen to output and inflation in both the short run and
long run as a...
Consider what causes the lags in the effect of monetary and
fiscal policy on aggregate demand. What are the implications of
these lags for the debate over active versus passive policy?
-Monetary Policy
What is monetary policy? Who conducts monetary policy in the
United States? Read the most recent FOMC statement. Did the FOMC
increase or decrease interest rates? Explain why the FOMC changed
the interest rate and how a change in the interest rate impact the
economy as a whole.
-Fiscal Policy
What is fiscal policy? Is the President and Congress currently
running expansionary fiscal policy or contractionary fiscal policy?
Why?