Fed want to decrease the money supply

Assignment Help Macroeconomics

Reference no: EM1373660

[A] What is meant by fiscal policy?
[B] How does crowding out occur?
[C] What is aggregate demand?
[D] What is an automatic stabilizer? Name one.
[E] Name three functions of money.
[F] How does the reserve ratio set by the Federal Reserve affect the ability of banks to make loans?
[G] Name the tools of the federal Reserve Bank. Which is most important?
[H] How does the real interest rate differ form the nominal interest rate?
[I] Does the fact that your bank keeps only a fraction of your account balance in reserve make you uncomfortable? Why don't people rush to the bank and retrieve their money? What would happen if they did?
[J] Why might the Fed want to decrease the money supply?
[K] Why do high interest rates so adversely affect the demand for housing and yet have so little influence on the demand for pizza?

Reference no: EM1373660

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