Investment banks [ad_1] What are the Fed’s four monetary policy goals? In what sense does the Fed have a “dual mandate”? How can investment banks be subject to liquidity problems? Q268: What is a bank panic? Why are policymakers more concerned about bank failures than failures of restaurants or clothing stores? [Button id=”1″]
Federal funds [ad_1] An article in the Wall Street Journal discussed the views of John Williams, the president of the Federal Reserve Bank of San Francisco, about the Taylor rule. According to the article, Williams argued that if the Fed had attempted to follow the Taylor rule during the recession of 2007–2009, it would have had to
Hypothetical information [ad_1] The hypothetical information in the following table shows what the values for real GDP and the price level will be in 2019 if the Fed does not use monetary policy: a. If the Fed wants to keep real GDP at its potential level in 2019, should it use an expansionary policy or a contractionary policy?
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Economy’s supply [ad_1] Describe the relationship of the AD, SRAS, and LRAS curves when the economy is in long-run macroeconomic equilibrium. Explain the impact of an earthquake adversely affecting an economy’s supply. [Button id=”1″]