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Monetary Policy

Monetary policy to increase the money supply

You serve as a staff economist for the Board of Governors of the Federal Reserve System. It is decided that an increase in the money supply is the correct policy, given the current economic situation. Which list of monetary policy actions would be appropriate? A. Open-market purchase, higher discount rate, higher required

Money policy

1. When you have $1,000 in a savings account at a bank: A) the bank holds a financial asset of $1,000 and you hold a financial liability of $1,000. B) the bank holds a financial liability of $1,000 and you hold a financial asset of $1,000. C) both you and the bank now have a financial asset of $1,000. D) both you and the

Corporation

What is a corporation? (a) Explain the different types of corporations in this answer. (b) Describe the major characteristics of a large publicly traded corporation.

Monetary Policy and the Federal Reserve

What is the Federal Reserve (Fed) all about? Which Federal Reserve District Bank is closest to you? Who is the current Chairman of the Fed? Should the Fed remain independent from political authority or should the President and Congress have a say in their operations? Why? Why not? What is FOMC? What is the current Federal Funds

Macroeconomic Analysis: Economic Indicators

Interpreting Macroeconomic Indicators Analyze several indicators of the macroeconomic conditions in an economy, such as interest rates, income, and other indicators such as CPI, inventory levels, wage rates, consumer confidence, etc. You may chose from these indicators: Economic growth Unemployment Inflation

Macroeconomics

1. Describe the three tools of monetary policy. 2. Find an article that shows a change in the US monetary policy. 3. State the objective of this monetary policy. 4. Discuss the expected outcomes of that policy. 5. Summarize how this monetary policy has affected (is affecting) the economy through change in the mon

Trade Imbalance Assessment

A firm developed the following national economic projections for the coming year: Exports totaled to $648B, and imports totaled to $852B. Capital outflows totaled to $384 and capital inflows totaled to $504. During the year it appears that these projections are quite accurate. (a) Discuss what will eventually happen to the

resent worth, future worth, and annual worth

a) When the salvage value is in year 4, and b) When the salvage value is in year 5. Machine 1 Machine 2 Machine 3 Initial Cost $800,000 $650,000 $575,000 Annual Operating Cost $50,000 $90,000 $105,000 Salvage value $40,000 $32,500 $28,750 Hint: A cash flo

Monetary Policy

Read the most recent report by the Federal Reserve Chairman. * What is monetary policy * Tools of monetary policy * Issues in evaluation of monetary policy

Budget deficits and economic growth

Economists generally agree that high budget deficits today will reduce the growth rate of the economy in the future. Why? Do the reasons for the high budget deficit matter? In other words, does it matter whether the deficit is caused by lower taxes, increased defense spending, more job-training programs, and so on? In your analy

Oligopolies and monopolistic competition are discussed.

In a 2009 Newsweek article, The 50 Most Powerful People List, there are 3 bankers who are listed as the 4th, 5th, and 6th most powerful people in the world. Read the following article on the "Economic Triumvirate": Downloadable pdf version: The Global Elite: Economic Triumvirate, or go to http://www.newsweek.com/id/176288

Classical and Keynesian schools of economics are compared.

Question One Contrast the revenue sources of state and local government vs. the federal government. What are the primary sources of funding for the two levels of government? Contrast the allocation of spending for state and local government vs. the federal government. Why do you think the two levels of government

Problem scenario

Empirical evidence suggests that individuals who invest n higher education benefit from a substantial 'education premium', i.e. their future salaries are on average higher than those of individuals with only a high school diploma. (a) What are the costs of higher education? What method would you use to assign a monetary valu

Economics: Monetary Policy Implementation

2. Suppose that the Federal Reserve sells $5 million worth of government securities to General Motors. What is the effect on the quantity of bank reserves? 3. "When the Fed increases the legal reserve requirements, it loosens credit, because the banks have more reserves," Comment and evaluate. 4. If the Federal Reserve

Macroeconomics

Explain the different measures of the money supply, and explain why the different definitions are important.

calculation of GDP

Of the following three activities one is included in the calculation of GDP: - Cleaning your house yourself; - Hiring a cleaning service to do it; - Selling illegal drugs on the street. Which is included and why aren't the other two included?

describe the state of the economy

I need some assistance, based on current news, please describe the state of the economy, government fiscal policy and Fedâ??s monetary policy by answering the following questions. Please provide citation where possible 1.What stage of the business cycle is the economy going through? Give several major econ indicators, for ex

The money multiplier

This problem relates to the Money Multiplier rather than the spending multiplier. This is a very important problem on money creation. The First National Bank has reserves of $150,000 and demand deposits equal to $1,200,000. The reserve ratio is 10 percent. How much in excess reserves does the bank now have? What is the maximu

Federal Reserve, fiscal and monetary policy

There is no doubt that the Fed, the Central Bank of the United States, plays an enormous and often successful role in the economy. Can they do something about the budget deficit? Is there a relationship between fiscal and monetary Policy?

Money Multiplier

What is the Money Multiplier? How does the Federal Reserve System shape the Monetary Policy?

Monetary Policy and Interest Rates

Most economists consider interest rates to be the principal instrument by which monetary policy affects economic activity. However, significant changes in the structure of financial markets have altered the interest rate channel. Do you agree or disagree with this point of view? 419 words, no references

monetary policy :sample question

For the past 3 years a major department store chain has averaged approximately $10 billion in long-term debt. Their debt is in the form of bonds that have been sold to investment funds and the public (If you are not sure what a corporate bond is look it up on the internet). For the sake of argument, let us assume that either n

Actual consumption of goods

2.An elderly consumer's only income is his monthly Social Security check. Last year, food cost $5 and clothing cost $10 per unit, and he bought 100 units of food and 25 units of clothing each month, exhausting his monthly Social Security check of $750. This year, the price of food is $8 and the price of clothing is $12. So that

U.S. expansionary monetary policy is expressed

Please help with the following problem at least 200 words. Explain the effect of U.S. expansionary monetary policy on the U.S. economy if exchange rates are flexible. How would the effectiveness of an expansionary monetary policy change if exchange rates were fixed?

The Role of Money and the Aggregate Model of the Macro Economy

Q1. Define money and list the functions it performs. Q2. Assume the government cuts its purchases by $120 billion. As a result, the budget deficit is reduced by $40 billion, private domestic saving decreases by $10 billion, disposable personal income decreases by $80 billion and the trade deficit is reduced by $15 billion. By