An economy suffers from recession (unemployment). Using werds and graphs, answer the following qu...
An economy suffers from recession (unemployment). Using werds and graphs, answer the following questions: A. Words only (no need for graph): Will the Central Bank aim to increase or decrease the federal fund rate? Explain B. If the demand for reserves intersects their supply at the vertical portion, show how the Central Bank can achieve (or cannot achieve) its goal with regard the interest rate, using the open market sale. Explain C. If the demand for reserves intersects their supply at the horizontal portion, show how the Central Bank can achieve (or cannot achieve) its goal with regard the interest rate, using the open market purchase. Explain D. If the demand for reserves intersects their supply at the horizontal portion, show how the Central Bank can achieve (or cannot achieve) its goal with regard the interest rate, using the discount rate. Explain E. If the demand for reserves intersects their supply at the vertical portion, show how the Central Bank can achieve (or cannot achieve) its goal with regard the interest rate, using the open requires reserves ratio. Explain
Solved
ECONOMICS
1 Answer
Thea Marinette Mendoza
Login to view answer.