Recalling the dual mandate bullseye chart, if an economy is in the northeast quadrant, the Fed should definitely Multiple Choice loosen monetary policy. reflect on the conflicting signals it is receiving. use restrictive monetary policy. use expansionary monetary policy.

The primary instrument of monetary policy for the Fed is the discount rate.     True   False

Discuss the main unconventional monetary policy tools.  Give examples of central bank policies from around the world for each of your arguments.

To achieve contractionary monetary policy, the Fed could     decrease the discount rate increase the sale of bonds increase the tax rate All of the answers are correct. None of the answers are correct.

As a governor of the Central Bank of Egypt, how could you use the THREE tools of monetary policy to control inflation and recession? Discuss each tool and use a table to demonstrate your analysis for the two scenarios

Describe the Fiscal Policy and the monetary policy and explain how The two policies are used to control money supply in the economy.

The central bank of a country facing economic and financial market difficulties asks for your advice. The bank cut its policy interest rate to the effective lower bound, but it wasn't enough to stabilize the economy. Drawing on the actions taken by the Federal Reserve during the financial crisis of 2007-2009, what might you advise this central bank to do? Multiple Choice O You should advise the central bank to use unconventional monetary policy tools such as quantitative easing, a policy in which the central bank alters the composition of its balance sheet, or credit easing, where aggregate reserves are provided beyond the level needed to lower the policy rate to zero. The central bank could also inform markets of its commitment to keep Interest rates low (forward guidance). Because the central bank has hit the zero bound with its policy Interest rate, there is nothing further it can do to Influence economic and financial market conditions. In the face of severe economic weakness, you…

In response to the Great Recession, the Federal Reserve had to take drastic and largely untested measures to stabilize both the financial system and macroeconomy. These measures caused the monetary base to increase from approximately $850 billion to over $4 trillion. Indicate whether each school of macroeconomic thought—classical, Keynesian, monetarist, real business cycle, and secular stagnationist—would support the Fed’s actions.

The Federal Open Market Committee can buy and sell government securities/bonds. Which of the following tools of monetary policy does this describe?

Higher unemployment rates for those 25 years old and younger in many European​ nations, in comparison to the United​ States, is best explained by the differing monetary policies between the European Central Bank and the Federal Reserve.   True   False