What the fed should do to stabilize aggregate demand

Assignment Help Macroeconomics
Reference no: EM13187559

Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand? Explain what the Fed should do if it wants to stabilize aggregate demand. If the Fed does nothing, explain what Congress might do to stabilize aggregate demand.

Reference no: EM13187559

Questions Cloud

How can we break the area under the curve : How can we break the area under the curve we are finding into smaller pieces so that we can find the true value?
State contains lead and iron but not silver or nickel : Assume your solution contains lead and iron but not silver or nickel. Explain how will you know that: - Either silver or lead is present ( that is, describe what you will see that will tell you at least one of these is there)
What are the implications of these lags for the debate : What causes the lags in the effect of monetary and fiscal policy on aggregate demand What are the implications of these lags for the debate over active versus passive policy
Value the approximate concentration of a typical enzyme : Estimate the approximate concentration of a typical enzyme and the number of the enzyme molecules inside each cell? Make any reasonable assumption that will help you calculate the numbers
What the fed should do to stabilize aggregate demand : Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand. Explain what the Fed should do if it wants to stabilize aggregate demand.
Composition diagram to explain why fractional distillation : composition diagram to explain why fractional distillation of 2 components is more easily accomplished if the components have boiling points that differ by 20 C or more?
State what is the molarity of the base : what is the molarity of the base? Show clearly all strps of calculation please and a generalized chemical equation
How technology could be used that might affect these trends : 1. Explain why you agree or disagree that Americans seem willing to sell their own privacy cheaply while simultaneously craving private information about one another. 2. Describe what role you think technology has played in these trends towards pri..
State acetate is allowed to react completely with a solution : If a solution containing 48.91 g of mercury(II) acetate is allowed to react completely with a solution containing 7.410 g of sodium sulifide how many grams of a solid precipitate will be formed?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explain how would each of the following theories

Explain how would each of the following theories of comparative advantage explain the fact that the United States exports computers.

  What is distinction between net investment, gross investment

What is the distinction between net investment and gross investment? Which is the total amount spent on investment in a given year? Which is the change in the capital stock?

  Explain in briefly about two paragraphs supply and demand

Explain in briefly about two paragraphs the supply and demand analysis and the impact of government regulations at McDonalds.

  Construct a model of irrational behavior

Economists are often criticized for making assumptions. Explain why are assumptions necessary? To think about this, you might consider an assumption that is often made,

  As customers will more price sensitive also price conscious

Do you think we, as customers will be more price sensitive also price conscious. What do you think this means for luxury goods.

  What is the value of the money multiplier

What is the value of the money multiplier and What are the nominal values of deposits, currency, and reserves

  Why might banning advertising drive up prices

A clinic finds that by eliminating appointments it can reduce costs. The clinic is able to eliminate some telephone staff, and physicians become more productive. Patients wait until the physician is available, so there is virtually no down time. D..

  How the elasticity of demand influences tax revenues

1. Using your understanding of tax incidence explain why some states do not charge sales tax for basic foods. 2. Explain how the elasticity of demand influences tax revenues? 3. Define progressive, regressive and proportional taxes and give an exampl..

  Preparation of a bank statement

When planning the process of preparing a bank reconciliation it is noted that under normal circumstances only one section of the examine may generate additional entries on the books of the account holder.

  Conclude that the net benefits of the pool are negative

An analyst is trying to determine the net social benefits generated by the city's public swimming pool. At the current admission price of $1.00, 400 individuals visit the pool annually. The total cost of the pool is $800 annually. Thus, the pool r..

  Define after-tax rate of reutrn

Assume the the equipment can be sold for its $12,000 salvage value at the end of the 8 years. Also assume a 46% income tax rate for state and federal taxes combined.

  Utilizing the info above which country has a comparative

Utilizing the info above, which country has a comparative advantage in producing cars and which has a comparative advantage in producing trucks.

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