Suppose that the liquidity effect is immediate and smaller than the other effects, and our expectations of inflation adjust slowly. Referring to the graphs on the right, choose the time path of interest rates from an increase in the growth rate of the money supply that occurs at time "T." A. Graph A B. Graph B When the Fed wants to raise the expected inflation, it should growth rate of the money supply. the If the Fed is only concerned about the short-run economym the liquidity effect is smaller than the other effects and expected inflation adjusts slowly, then to lower the growth rates of the short-run interest rates, the Fed should always the money supply. a) Interest Rate i ¹2 N N 1₁ F Interest Rateli ¹2 T T I 1 I 1 I I 11 T I Time Time

The Fed is most likely to raise the federal funds rate target when the Fed expects _______.     A. high unemployment and a recessionary gap   B. high long-term interest rates and a recessionary gap   C. low unemployment and an inflationary gap   D. banks to hold ample reserves and charge low interest rates on loans

Typed plzzz and Asap Thanks

economic   Illustrate each of the following situations with a graph showing the IS curve and the Fed rule, and explain what happens to the equilibrium values of the interest rate and output: a. An increase in G with the money supply held constant by the fed b. A decrease in Z with no change in Government soending PLEASE SHOW GRAPH

Question 7. Suppose there is an exogenous increase in the price of oil in an economy. a. Use the aggregate demand and supply model to illustrate and examine the impact of the oil-price increase on output, employment and the price level in both the short run and the long run. b. If the Bank of Canada cares about keeping output and employment at their natural-rate levels, what is the policy response of the Bank of Canada? What is the impact of policy response on the price level? Use the aggregate demand and supply model to explain your answer. Please illustrate the answers using figures with aggregate demand and supply curves. Please also briefly explain the answers in words.

I would like to ask how to calculate c and d

The Fed is fighting recession and it happens to overstimulate the economy. If the expected inflation rate rises above the 2 percent goal, what is the cost of returning the inflation rate back to its goal?   The cost of returning the inflation rate back to its goal is _______.     A. an inflationary gap and an even higher inflation rate than initially   B. unemployment below the natural unemployment rate   C. a decrease in potential GDP and aggregate supply   D. a recessionary gap and a higher unemployment rate

. What is the opportunity cost of holding money? How is k related to the velocity of money? s. Use the Quantity Theory of Money to explain how long run inflation occurs. If the Federal Reserve Bank wishes to keep the inflation rate at zero percent, at what rate should the money supply grow? Why?

F2 3 E D #3 1.7 The hypothetical information in the table below shows what the values for real GDP and the price level would have been in 2019 if the Federal Reserve did not use monetary policy: Real GDP F3 Year 2018 2019 b) Suppose t ZUTA If the Fed wanted to keep real expansionary pol R LL F h Real GDP Full employment real GDP The inflation rate d. The unemployment rate F4 I Potential Real GDP $18.5 trillion 19.0 trillion c) Draw an aggregate demand and aggregate supply graph to illustrate your answer. Be sure that your graph contains LRAS curves for 2018 and 2019; SRAS curves 2018 and 2019; AD curve for 2018 and 2019, with and without monetary policy actions; and equilibrium real GDP and the price level in 2019 with and without policy. DII % 5 T G F5 O Search 6 F6 Y $18.5 trillion 19.4 trillion H J F7 in real GDP at its potential EDC & 7 U PrtScn F8 Price Level *00 142 150 8 t have u Home F9 K 9 End O F10 0 PgUp F11 P

What happens when a central bank pursues inflation targeting?     A. The policy actions that central banks use to achieve the inflation target are kept secret.   B. With inflation targeting, the United States would be more successful at achieving low and stable inflation.   C. Many central banks achieve their inflation target at the expense of extremely high unemployment.   D. The bank announces an explicit inflation target and the public is confident the bank's policy will achieve that target. thank you!!