What is the Fed’s monetary policy instrument and What are the main influence on the FOMC

Q: How does the structiure of the Fed reflect a compromise between centralized (federal) power and…

A: Central Bank Consist of  The composers of the Federal Reserve Act deliberately dismissed the idea of…

Q: Think about under what conditions of AD (aggregate demand), SRAS (short-run aggregate demand), and…

A: Answer: Introduction: Boom: it refers to the period of increased economic activity. During the boom,…

Q: 8. (3.9) Auditing the Fed? In recent years, several members of Congress have sponsored bills that…

A: One of the most critical functions of the United States Congress is oversight. Congressional…

Q: 17. Which of the following sequence of events follows an expansionary monetary policy? arogoto

A: Expansionary monetary policy is a tool used by central Bank for the smooth going of the economy.

Q: “The Fed can perfectly control the amount of reservesin the system.” Is this statement true, false,…

A: The fed can make some variations in the money supply by buying and selling of bonds through the open…

Q: What is the federal funds rate?   What problems does the FED encounter when trying to control the…

A: In the United States, Fed makes monetary policy and influence the monetary system by making changes…

Q: Who makes decisions on monetary policy within the Federal Reserve? A. The 12 Federal Reserve…

A: Federal Reserve is the central bank of the USA.  The functions of Federal Reserve are as follows:…

Q: The best description of a how a central bank like the Federal Reserve makes monetary policy these…

A: The central bank like Federal Reserve are the highest financial authority in a country to make…

Q: Expansionary monetary policy

A: Fed uses expansionary monetary policy to increase money supply, using following tools. 1) Open…

Q: Show as a diagram and explain the time lags in monetary policy

A: Ineffectiveness of economic policies such as Monetary and Fiscal policy are due to time lags that…

Q: Suppose real GDP is forecasted to grow by 2.482.48%, the velocity of money has been stable, and the…

A: According to the quantity theory of money: Where M is the money supply, V is the velocity of money,…

Q: What are the three monetary policy tools that Fed has at its disposal?

A: Monetary policy refers to the central bank’s policy that brings changes in the supply of money by…

Q: eassy in 250 words. What is the role of the Central Bank? How does central bank regulate monetary…

A: A central bank is a government agency that manages banks, implements monetary policy, and offers…

Q: Discuss the three (3) traditional monetary policy tools that the Federal Open Market Committee…

A: Federal Open Market Committee (FOMC) of the Federal Reserve has the primary responsibility of…

Q: Describe the tools used by the Fed since March 2020, including some new non-traditional tools. What…

A: The economic downturn precipitated by the US coronavirus epidemic led to the closure of numerous…

Q: Fed Operation Describe the exact mechanism through which increasing reserve requirements affects…

A: Discount Rate: The discount rate is the rate at which banks take a loan from other banks (say…

Q: Given the graph below the Fed will use monetary policy to interest rates and aggregate demand. Price…

A: In the given graph, the economy is producing more than its potential which generates an inflationary…

Q: Imagine that you are the leader of Bank of Canada's economic policy advisory board. Explain why…

A:

Q: Describe two concepts of central bank independence. Is the Fed politically independent? Why do…

A: Goal independence and instrument independence are two types of central bank independence. In case of…

Q: Why do Fed policies aim to keep the level of interest rates low in recent years? How have those…

A: Federal Reserve: It is a system of the USA in which this system helps the government to take care of…

Q: identify the expansionary monetary policy implemented y the central bank. and explain   On…

A: Government uses fiscal policy tools such as government spending and taxes for maintaining economic…

Q: re the current federal funds rate ar Federal Reserve Bank? How do the two ra these rates affect…

A: The central bank chiefs, who are answerable for laying out the rebate rate at their separate banks,…

Q: How do the monetary policy tools of the European System of Central Banks compare to the monetary…

A: The Federal reserve bank was established in 1913, under the Federal Reserve Act of 1913. The…

Q: What are money multiplier and monetary policy? How are they related? Describe the functions of the…

A: The money supply in macroeconomics refers to the total amount of money held by the public at a given…

Q: What is Domestic Systemically Important Bank (D-SIB) and Global Systemically Important Bank (G-SIB)…

A: Banks are financial institutions which provide financial services to its customers. Banks accept…

Q: Describe the Federal Reserve's monetary policy instruments and how they are used.

A: Various monetary policy instruments of Fed are 1. Required reserve ratio 2. Discount rate 3. Open…

Q: The graph below shows the monetary rule curve for the country of HOYA. According to this rule, the…

A: Here, given graph explains the relationship between real federal funds rate and inflation rate in…

Q: Which of the following actions by the Fed would reduce the money supply? a. an open-market purchase…

A: Fed has a significant impact on money supply as it is the only authority that can increase or…

Q: When the central bank pursues contractionary monetary policy we should expect to have a. a reduction…

A: Contractionary monetary policy LM curve shifts to the left  IS curve remains unchanged.  Interest…

Q: What’s the monetary policy? Why the Fed implements the monetary policy?

A: What’s the monetary policy? Answer: Monetary policy is a tool to improve the economic situation…

Q: Explain the Taylor rule, including the formula for setting the overnight rate target, and the…

A: The money supply is regulated by the central bank of the country. They use various tools like open…

Q: Comment on the Fed's current monetary policy based on Powell's testimony.

A: The monetary policy is policy which is adopted by the monetary authority (central bank of the…

Q: Assume the economy is suffering from massive inflation and you are the Chairperson of the FED. What…

A:

Q: List three main tools available to the Fed to change money supply in the economy.   What would be…

A: The three main tools of changing the money supply in the economy by the central bank are as below:…

Q: Describe the RBA’s monetary policy transmission process. Explain in details how the decrease in the…

A: The transmission mechanism is a process by which the monetary policy of the central banks brings a…

Q: With respect to controlling the money supply,the law requires the Fed to take orders from   a)the…

A: The federal reserve is the central bank of the United States and it works with the objective of…