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Economic growth has slowed in the last quarter of the year to 0.6% from the previous third quarter growth rate of 4.9%. The economy lost 12,000 jobs in the last month of the previous year while shedding 80,000 jobs during the months of January and February of the current year. Inflation remains low and stable. What should the Fed do?
1. Should the Fed buy or sell bonds, if any, through open market operations?
2. Is your choice an easy or tight monetary policy?
3. Describe the effect on Aggregate Demand (AD) and GDP.
4. What would be the probable effect on interest rates, inflation, and unemployment?
In the cas Palmer v. Champion Mortgage Palmer received a debt-consolidation loan from Champion. When she signed the loan agreement, she also received the required TILA disclosures.
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q.assume that in a certain region there is a single firm producing chocolates nestlex. in this region there is a
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R = 3% (annual domestic interest rate), R* = 5% (annual foreign interest rate) E = 2 (current spot rate; expressed as the price of pound in terms of us dollar) If the domestic money supply increases by 10% and drive the interest rate down by 1% in th..
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