The questions are below. 150 words minimum with references.The Federal Reserve may increase or decrease money supply depending on the economic condition.What policy instruments does the Fed use for tSeptember 3, 2020
Comparethe short run and long run for perfectly competitive firms. How do perfectly competitive firms adapt to market changes in the short run?September 3, 2020
Questions below 150 words minimum with references.
- The change in money supply affects the economic agents. Suppose the Federal Reserve increases the money supply to boost aggregate demand during recessionary pressure. How does the increase in money supply affect consumer spending and investment? How does it affect the firm or organization you work for? How do the Federal Reserve policies affect us as individuals (households)?
- High rate of inflation is considered bad for the economy since it has various costs. What are the costs of inflation? Which of these costs do you think are most important for the U.S. economy? What are your shoe leather costs of going to the bank? How might you measure these costs in dollars? How do you think the shoe leather costs of your college president differ from your own?