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    Inflation

    Federal Reserve's Relationship to the Money Supply

    1. Describe three ways in which the Federal Reserve can change the money supply. 2. If the Federal Reserve is going to adjust all of these tools during an economy that is growing too quickly, what changes would they make? 3. If the Federal Reserve is going to adjust all of these tools during an economic recession, what cha

    Economics questions

    1. Use the DD-AA model to examine the effects of a one-time rise in the foreign price level, P*. If the expected future exchange rate rises immediately in proportion to P* (in line with PPP), show that the exchange rate will also appreciate immediately in proportion to the rise in P*. If the economy is initially in internal an

    Calculating rates of money supply, inflation and velocity.

    Between 1984 and 1985, the money supply in the United States increased to $641.0 billion from $570.3 billion, while that of Brazil increased to 106.1 billion cruzados from 24.4 billion. Over the same period, the U.S. consumer price index rose to 100 from a level of 96.6, while the corresponding index for Brazil rose to 100 from