Suppose the Federal Reserve (the US central bank) increases the money stock. Create a graph that explains the effect of the Fed's expansionary monetary policy in the Short Run.

Suppose the Bank of Canada orders a contractionary monetary policy. Explain briefly what will happen to the following variables relative to what would have happened without the policy: a.    The money supply b.    Interest rates c.     Investment d.    Consumption e.    Net Exports f.     The aggregate demand curve g.    Real GDP h.    The price level

Federal Reserve is the central bank of the United States. She conducts monetary policy with various tools.a. Many central banks share similar policy objectives. What are the objectives of the Federal Reserve? b. Suppose the Federal Reserve announces a “loose” monetary policy.What has to be done, traditionally, with an open market operation? Explain with reference to the money creation process

Two tools the Federal Reserve would use to implement the decision to increase the federal funds would be Open market operations and the IOER rate. Show in a graph of the federal funds market the effect the tools mentioned above have on this market. What effect do the two tools used have on the interest rates faced by firms and households? What do you expect to happen to the money supply? What do you expect to happen to the inflation rate? How would you expect all these decisions to affect employment in the economy? How do the effects on the money supply and inflation rate align with what the Fed was hoping to attain(to achieve maximum employment and inflation at the rate of 2 percent over the longer run)?

Which is NOT one of the three main tools used by the Fed to influence aggregate demand? distributing currency open market operations changes in the interest rate paid on reserves lending to banks and other financial institutions

suppose the economy suffers an adverse supply shock. if the federal reserve responds by increasing the money supply, the short run results will be

Suppose the economy begins at full employment. Label this starting point as point "1." Then, suppose that, due to increased instability in the financial markets, a decrease in investor and consumer confidence occurs. Show the effects on your graph and label the new equilibrium point "2." Lastly, suppose the Federal Reserve wants the economy to return to full-employment as quickly as possible. Should the Fed intervene? If so, show the impact of successful monetary policy on your graph. Label this new equilibrium point "3."

If central bank increases the required reserve ratio, and at the same time the government increases the given subsidy to the exporters; then what happens to equilibrium price and output in the economy in the short-run and long - run? Sketch graph and explain your answer.

An example of monetary policy is an increase in_____by the_____, which_____aggregate demand.     1)  taxes; President; increases   2)  the quantity of money; Central Bank; decreases   3)  the quantity of money; Central Bank; increases   4)  the quantity of money; government; increases   5)  federal spending; Central Bank; increases

Assume the economy is suffering from massive inflation and you are the Chairperson of the FED. What type of monetary policy would you employ and describe what changes are made to the “three tools” of monetary policy. Describe the subsequent impact on the money supply, interest rates, aggregate spending, and real GDP.