What causes a recession? Your first assignment as a federal reserve community liaison is to teach...

What causes a recession?

Your first assignment as a federal reserve community liaison is to teach a group of NYC high school seniors about the macroeconomic causes of the Great Recession? Write an essay or make an power point presentation for the seniors by adding pictures

Expert Solution

Rahul Sunny answered 1 year ago

Why do we teach that the Federal Reserve is very independent of the "politics of the...

Why do we teach that the Federal Reserve is very independent of the "politics of the moment"? What is it about its structure that "protects" it from political pressure. How is that working out for the Fed these days?

When a recession hits, the Federal Reserve would be expected to: reduce the required reserve ratio,...

When a recession hits, the Federal Reserve would be expected to: reduce the required reserve ratio, reduce the discount rate, and buy securities in the open market reduce the required reserve ratio, reduce the discount rate, and sell securities on the open market reduce the required reserve ratio, increase the discount rate, and buy securities on the open market increase the required reserve ratio, increase the discount rate, and buy securities on the open market

What is the federal reserve? What are the functions of the federal reserve? Please discuss in...

What is the federal reserve? What are the functions of the federal reserve? Please discuss in detail.

If the Federal Reserve wants to prevent a recession, it should _____. Multiple Choice decrease the...

If the Federal Reserve wants to prevent a recession, it should _____. Multiple Choice decrease the money supply to raise interest rates and lower aggregate demand increase the money supply to lower interest rates and raise aggregate demand increase the money supply to raise interest rates and lower aggregate demand decrease the money supply to lower interest rates and increase aggregate demand

Suppose the US economy is in recession. The unemployment rate is 7% and the Federal Reserve...

Suppose the US economy is in recession. The unemployment rate is 7% and the Federal Reserve Bank is considering using monetary policy to expand output. Assume the bank knows, with certainty, that: i. absent changes in monetary policy, unemployment will still be 7% next year; ii. the natural rate of unemployment is 5%; iii. from Okun's law, 1% more output growth for a year leads to a 0.4% reduction in the unemployment rate. Also assume the bank can effectively use...

In 2009, the U.S. economy was in a severe recession. The Federal Reserve had lowered the...

In 2009, the U.S. economy was in a severe recession. The Federal Reserve had lowered the federal funds rate to about 0 percent, but still wanted to stimulate the economy more. The inflation rate in 2009 was about –1%, but households’ and businesses’ inflation expectations for the upcoming year were higher and positive, about 1.5%. a) First, do households’ and businesses’ investment demand depend on the ex ante or ex post real interest rate? Briefly explain why. b) Draw an...

What are the causes of the Recession in 2008-09?

vv Unit 7 Assignment: Money, Banks, and the Federal Reserve System In this Assignment, you will...

vv Unit 7 Assignment: Money, Banks, and the Federal Reserve System In this Assignment, you will describe how money, banks, the Federal Reserve System, and the effects on money growth based on the rate of inflation.

1 What is a recession? 2 What causes a recession? 3 What phase of the business...

1 What is a recession? 2 What causes a recession? 3 What phase of the business cycle are we currently in? 4 If 7 million workers are unemployed and 55 million workers are employed, calculate the unemployment rate. Round to the nearest tenth of a percent. 5 Starting from the previous problem, if 2 million unemployed workers stop looking for work, recalculate the unemployment rate. Round to the nearest tenth of a percent. 6 Starting from the previous problem, if...

Since the great recession of 2008, the Federal Reserve has had an aggressive policy of stimulus...

Since the great recession of 2008, the Federal Reserve has had an aggressive policy of stimulus primarily with very low interest rates. This week we discuss cost of capital and project valuation. Given the even lower interest rates to combat the Coronavirus and its economic impact, what would the key considerations be for determining the method of financing for a major project. Assume that you are financing a major business acquisition (around $500-600 million). Use all materials that you have...

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