As a member of the FOMC, Write a directive to the committee about the conduct of monetarybpolicy over the next two months. Your directive may address a target for GDP growrh rate, the federal funds rate, and the rate of inflation.
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- List four argumnets that favor a central Bank that is brought under the control of govermentWhen the inflation rate increases, what happens to thefederal funds rate? Operationally, how does the Fedadjust the federal funds rate?How does Stephanie Kelton’s explanation of Modern Monetary Theory4 (MMT) affect your view of government spending? Provide specific examples and describe how MMT contributes to your understanding.
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- Predict how possible changes in monetary and/or fiscal policy may impact the supply and demand of the iPhone.SUBMISSION IS DUE ON WEDNESDAY, 4th AUGUEST 2021. EMAIL YOUR SUBMISSIONS TO: jwappiahkubi@ug.edu.gh The commodity market for a simple economy is in equilibrium and when Y = C + 1 + G. The money market is in equilibrium when the supply of money (M) equals Demand for money (Md). Demand for money composes of transaction- precautionary demand for money (Mt) and the speculative demand for money (Ms). Assume the economy is characterised by the following information. C = 4800 + 0.8Yd T = 100, | = 1900 - 75i, G = 4000, M = 5000, Mt = 0.3Yd Ms = 100 – 15i a) Derive an expression to show the IS function b) Derive the LM function c) What values of Income and Interest rate provides for both the goods market and money market equilibrium in this economy d) Sketch the IS and LM curves for this economy. e) Outline four factors that cause a shift in the IS curve. Page 1 of 1A6 Explain, using diagrams, how keynesian monetary transmission works if there is a decrease in money supply.
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