Decrease the money supply

Assignment Help Business Economics
Reference no: EM131953829

For each of the following event, indicate how the Fed should respond if the Fed is in charge of keeping output at its natural rate, regardless of what happens to the price level. In your answers indicate 1) if the Fed will increase or decrease the AD, 2) if the Fed will increase or decrease the interest rate, 3) if the Fed will increase or decrease the money supply, and 4) what open market operations will the Fed conduct.

a. OPEC raises crude oil prices.

b. The demand for new houses sharply decreases causing a major slow down in the housing market.

c. There is a stock market boom.

Reference no: EM131953829

Questions Cloud

Explain what were your expectations about the message : Explain what were your expectations about the message and how were they influenced or changed by the manner the information was delivered?
Existing firms advertising expenses : The new entrant decides to match the existing firms advertising expenses but only sells 20 000 units of output.
Describe erikson developmental stage : Describe Erikson's developmental stage, intimacy versus isolation. Discuss the core challenge associated with this stage and what might occur.
Analyze the speakers physical aspects of delivery : Physical Delivery: Analyze the speaker's physical aspects of delivery. How does the speaker use posture, gestures, illustrators, and emblems?
Decrease the money supply : if the Fed will increase or decrease the money supply, and 4) what open market operations will the Fed conduct.
Why is bidding your valuation weakly dominant strategy : Why is bidding your valuation weakly dominant strategy in the standard independent private values auction model? Explain all possible cases
Discuss about the psychosomatic medicine : Weekly Journals: During each of the assigned weeks, you will write two paragraphs, each 300 words in length (i.e., 600 words total).
Construct a text message in two to three complete sentences : Construct a text message in two to three complete sentences. Target the appropriate professional audience. Use appropriate language for professional audience.
Find the trading price for petroleum : Suppose the government imposes an import quota of 1200 units of barrels. Find the trading price for petroleum.

Reviews

Write a Review

Business Economics Questions & Answers

  What would occur as government impacted the economy

If LRAS = $500 billion, RGDP = $700 billion, and MPC = .8, then what should the Fed do? Be Specific. Also draw and label both the current situation and what would occur as the government impacted the economy through their actions.

  Travel fund at the end of the third year

The Pirerras are planning to go to Europe 3 years from now and have agreed to set aside $190/month for their trip. If they deposit this money

  Government employs chartered accounts

The revenue department of a state government employs Chartered Accounts (CA) to audit corporate tax returns and Book Keepers(BK) to audit individual returns.

  What number of units of annual production

Company A has fixed expenses of $15,000 per year and each unit of product has a $0.20 variable cost. Company B has fixed expenses of $5,000 per year and can produce the same product at a $0.50 variable cost. At what number of units of annual producti..

  Describe graphically why someone guaranteed an annual salary

Describe graphically why someone guaranteed an annual salary might choose to work fewer hours than someone who could earn that same amount through hourly pay.

  What are the total current liabilities

If a company's accounts payable is $42,041, retained earnings are $412,474, long-term debt is $391,227 and your accrued expenses are $5,966, what are the total current liabilities?

  Explain how this change in exchange rate

Canada is the largest trading partner for the united states. in 2009 , united state exports to Canada were more than $171 billion and imports from Canada totaled more than $224 billiom. On January 1, 2009, the exchange rate between the Canadian dolla..

  Investment spending change as the events occur

How will planned investment spending change as the following events occur?

  What is the price monopolist should charge

A firm faces the following demand curve. where Q is output and P is price. the firm's total cost function is given by TC=20,000 + 20 Q. what is the level of production. what is the price monopolist should charge.

  The factors which affected labor demand also labor supply

Illustrate what was the impact on the supply also demand of labor on one sector of the labor market. Elucidate the factors which affected labor demand also labor supply in the chosen historical example.

  Speaking to an audience of business people

Given that you are a newly hired government agent and you are speaking to an audience of business people, using economics terms, concepts, and or methods

  The market for hamburger is in equilibrium

The market for hamburger is in equilibrium. The equilibrium price & quantity is $25 for 23 hamburgers. Consider the effects of an increase in the number of firms in the market. How would the curves on a supply/demand graph change?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd