Chapter 14, Problem 7CQ

(a)

To determine

Identify the action of the Fed’s influence on the reserves available to banks.

(b)

To determine

Identify the action of the Fed that influences the real interest rate.

(c)

To determine

Identify the action of the Fed’s influence on household spending on consumer durables.

(d)

To determine

Identify the action of Fed’s influence on the exchange rate value of the dollar.

(e)

To determine

Identify the action of the Fed’s influence on the net exports.

(f)

To determine

Identify the action of Fed’s influence on the prices of stocks and real assets.

(g)

To determine

Identify the action of Fed’s influence on the real GDP.