Variables that affected by proposed steps

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Q1. Due to the housing bubble, many houses are now selling for much less than their selling price just two or three years ago. There is evidence that homeowners with virtually identical houses tend to ask more if they paid more for the house. What fallacy are they making?

Q2. "Money" Please responds to the following:
Given our current economic situation, determine the steps that the Federal Reserve should take to help stabilize our economy.
Explain how each of the following variables will be affected by proposed steps that you have identified in the first part of the discussion: money supply, interest rates, inflation rate, aggregate demand, and output. Provide support for your response.

Reference no: EM136686

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