List the costs of high inflation

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Reference no: EM1375652

Question1. Describe how each of the following changes money supply.

[A] the Fed buys bonds

[B] the Fed raises the discount rate

[C] the Fed raises the reserve requirement

Question2. In the early 1930s there were a number of bank failures in U.S. What did this do to money supply? The New York Federal Reserve Bank advocated open market buys. Would these purchases have reversed the change in the money supply and helped banks? Explain.

Question3. List and define any two of the costs of high inflation.

Question4. List the factors that might influence a country's exports, imports, and trade balance.

Question5. What is the difference between monetary policy and fiscal policy?

Reference no: EM1375652

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