Policy of Federal Reserve

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 changes would they make? 4. What changes, if any, to the current condition of these tools would you make at the next meeting of the Federal Reserve? Explain why and the benefits/drawbacks of this strategy.

How do changes in supply and demand affect interest rates?

A. How do changes in supply and demand affect interest rates? B. Give an example of how fiscal and monetary policies compliment or work against each other?

GDP

Calculate the totals change in a year's GDP A family sells a home, without using a broker, for $150,000. They could have rented it on the open market for $700 per month. They buy a 10-year old condo for $200,000; the broker's fee on the transaction is 6% of the selling price. The condo owner was formerly renting the unit for $500 per month.

Under what conditions would price discrimination unravel

Under what conditions would price discrimination unravel?

Euro jackpot, purchasing power parity, covered interest arbitrage

I bought a ticket while i was on vacation in Ireland, and won a 1 million Euro jackpot after all taxes were taken out. 1.If the current exchange rate is US$1 equals 1.25 Euros, how much did you win in US dollars? 2.Suppose that the interest rate in Irish banks is 5% for a one year CD. In the USA, the rate is 2% for a one year CD. If you left your winnings in Ireland, how many Euros would you have in a year? If you had taken your winnings back to the USA, how many dollars would you have? 3.Suppose when you cashed in your CD in Ireland a year from now, the exchange rate had changed from US$1 to 1.25 Euro, to US$1 to 1.30 Euro. How much would your Irish bank account be worth in US$ at th... click for more