1 answer

# Question 12 (20 points) The Federal Reserve hus a dual mandate of full employment and price...

###### Question:

Question 12 (20 points) The Federal Reserve hus a dual mandate of full employment and price stability. Oftentimes this mandate is challenging as there is a short term fradcoff betweon unemployment and inflation. From 2008 to 2015 nowever, infation was consistently below the target rate while unemployment was well above ils naturaleve Should the Fed have pursued more aggressive monetary policy to raise tilation and lower unemployment? Choose one from below and stale which school of oconomics your answer is subscribing. Then explain your answer using what we have learned in this class A No. Inilation is always bad because it lowers the incentive to invest and we know that vestment that increuses productivity is the orily way to raise living standards in the long run H. No. The Fer exhausted als normal tools and the app topnato por response then is large scale fiscal stimulus. There is only so much tho He can do. C. Yes. The red could have done more and raising inflation to 3 or 4 porcent would havo eased the recovery without long term damage to the economy D. No. Tho Fed should not uver-stimulate the economy by raising inflation and lower unemployment as the current economic situation is quite stable. Rather the Fed should raise the interest rate so thal when there is another rocession, the Fed has an effective tool to use

## Answers

#### Similar Solved Questions

1 answer
##### 1. Understanding the implications of taxes on welfare The following graph represents the demand and supply...
1. Understanding the implications of taxes on welfare The following graph represents the demand and supply for pinckneys (an Imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (s...
1 answer
##### How do I find the dot product of vectors v =2i-3j and w= i-j?
How do I find the dot product of vectors v =2i-3j and w= i-j?...
1 answer
##### Why does electronegativity increases across a period?
Why does electronegativity increases across a period?...
1 answer
##### 5. For the reaction given below: CH3NH2 + HSO4 = CH3NH3* + SO42- a) The acid...
5. For the reaction given below: CH3NH2 + HSO4 = CH3NH3* + SO42- a) The acid on the reactant side: b) Its conjugate base (on the product side): 6. a) What is the conjugate base of NH3? b) What is the conjugate acid of HPO42- ?...
1 answer
##### View Policies Current Attempt in Progress In Applied Life Data Analysis (Wiley, 1982), Wayne Nelson presents...
View Policies Current Attempt in Progress In Applied Life Data Analysis (Wiley, 1982), Wayne Nelson presents the breakdown time of an insulating fluid between electrodes at 34 kV. The times, in minutes are as follows: 0.30, 0.84,0.99, 1.23,2.74.3.02. 4. 23.4.73,471,6.59.7.26.7.95, 8.16, 12.07.31.62,...
1 answer
##### Question 1. (15 marks) Mr. Horsefield, the manager of Solomon Mutual Fund Co., expects to evaluate...
Question 1. (15 marks) Mr. Horsefield, the manager of Solomon Mutual Fund Co., expects to evaluate the return and risk of several possible portfolios through the relationships among the risk-free rate of return, market rate of return, market risk premium, and systematic risk. Then, the manager finds...
1 answer
##### Give at least one example of how the understanding of nutrition can directly impact your nursing...
Give at least one example of how the understanding of nutrition can directly impact your nursing care related to patients with diabetes or prediabetes....
1 answer
1 answer
##### Please solve above questions. 12. Market equilibrium and disequilibrium The following graph shows the monthly demand...
Please solve above questions. 12. Market equilibrium and disequilibrium The following graph shows the monthly demand and supply curves in the market for hats. Use the graph input tool to help you answer the following questions. Enter an amount into the Price f supplied at that price. You will not be...
1 answer
##### 10.0 g of NO and 10.0 g of O2 react together in the following unbalancedd reaction....
10.0 g of NO and 10.0 g of O2 react together in the following unbalancedd reaction. How many grams of NO2 will be formed? NO + O2 --> NO2...
1 answer
##### 4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from...
4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a return equal to the IRR. Thus, the modified IRR approach makes ...
1 answer
##### Please answer the following questions thoroughly: Please, i need Unique answer, Use your own words (don't...
Please answer the following questions thoroughly: Please, i need Unique answer, Use your own words (don't copy and paste).and In maximum 150 words *Please, don't use handwriting. * i need References APA style Q2: Define stroke. Discuss the pathophysiology of ischemic stroke and hemorrhagic s...
1 answer
##### Explain the following statement by Kaushik Basu using graph – “Child labor as a bad equilibrium”....
Explain the following statement by Kaushik Basu using graph – “Child labor as a bad equilibrium”. What are the policy prescriptions to overcome child labor?...
1 answer
##### Aromatic synthesis: synthesize each compound. i dont understand how to get the -OH wohl, -0. 04...
aromatic synthesis: synthesize each compound. i dont understand how to get the -OH wohl, -0. 04 Il ſi Hsc OH HC...