Answer the following short questions: One of the Federal Reserve’s responsibilities involves systemic risk. What is systemic risk and how does the concept of “lender of last resort” fit into this responsibility? Is monetary policy effective in changing the level of spending in all cases, e. it works regardless if the policy involves raising rates to slow spending or lowering rates stimulate spending? First, explain how we calculate the level of unemployment – provide the equation and an explanation. Second, we currently have in the US a rate of unemployment that some economists describe as “near full employment” yet the rate is roughly 3.6%, not zero. How can one say we are near full employment if the rate if not near zero?
Answer the following short questions: One of the Federal Reserve’s responsibilities involves systemic risk. What is systemic risk and how does the concept of “lender of last resort” fit into this responsibility? Is monetary policy effective in changing the level of spending in all cases, e. it works regardless if the policy involves raising rates to slow spending or lowering rates stimulate spending? First, explain how we calculate the level of unemployment – provide the equation and an explanation. Second, we currently have in the US a rate of unemployment that some economists describe as “near full employment” yet the rate is roughly 3.6%, not zero. How can one say we are near full employment if the rate if not near zero?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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- Answer the following short questions:
- One of the Federal Reserve’s responsibilities involves systemic risk. What is systemic risk and how does the concept of “lender of last resort” fit into this responsibility?
- Is
monetary policy effective in changing the level of spending in all cases, e. it works regardless if the policy involves raising rates to slow spending or lowering rates stimulate spending? - First, explain how we calculate the level of
unemployment – provide the equation and an explanation. Second, we currently have in the US a rate of unemployment that some economists describe as “near full employment” yet the rate is roughly 3.6%, not zero. How can one say we are near full employment if the rate if not near zero?
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