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In 2008, the Federal Reserve faced a decrease in aggregate demand caused by the housing and financial crisis and a decrease in short-run aggregate supply caused by rising commodity prices, particularly an increase in oil prices.
a. Suppose the Fed responds quickly to these shocks and adjusts monetary policy to keep unemployment and output at their natural rates. What action would it take?
b. Given the situation posed with the rising oil prices, why might the Fed choose not to pursue the course of action described in part (a)?
Daily high temperatures in the city of Houston for the last week have been as follows: 84, 80, 79, 81, 78, 73, 76 yesterday.
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What can go wrong? However, when 5 years pass you realize you agreed to a balloon mortgage, and the rest of that loan is due right now. How much do you need to pay for your final (60th) payment?
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Imagine you are the Dean of Academic Affairs, who serves as the manager over all full and part time instructors, associate deans and support staff.
What major forces impact Electra (or any global producer) in trading in global markets?
What are your priorities in this scenario and what would your intial actions be - Disgruntled Employee Scenario
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