basic econimic

Homework Questions for Macroeconomics Foundations.

1) If the FOMC decides to raise interest rate, how can they do this in it Open Market Operations?

2) If the bank is advertising a Mortgage (loan) at 6%, and the inflation rate is 2%, what is the Real Interest Rate?

3) Who is in charge of Fiscal Policy? Monetary Policy?

4) Another economic measure taken by the Trump is Protectionism, basically implementing tariffs on certain foreign goods. What is the purpose of this measure?

5) The “Wealth Effect” is?

6) What is the difference between Microeconomics and Macroeconomics?

7) What is the most important Economic statistic for the Federal Reserve to follow Inflation?

8) What is the Money multiplier?

9) If the economy is really struggling, and we are in a recession, name 2 Fiscal Policy measures that would hopefully stimulate growth and increase the GDP? Name a President who has used this policy? Is the policy Expansionary or Contractionary?

10) If we are in a recession, what measures can the Federal Reserve take to improve conditions? How would the Federal Open Market Committee (FOMC) have a hand in this measure?

11) If the Federal Reserve believes that inflation is getting out of control, what sort of Monetary Policy can they take to temper it? How would the FOMC have a hand in this measure?

 

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