Consider the various actions listed below that can be taken by the Federal Reserve System. Place each action description into the proper bin labeled with the specific group that is responsible for taking the action. Regional Federal Reserve District Banks Board of Governors of the The Federal Open Market Committee Federal Reserve System Answer Bank Distributes coin and currency Appointed by the president to serve 14 year terms Provides information on regional economic conditions through the Beige Book report Comprised of the Board of Governors and five regional bank presidents Oversees national banking and consumer credit regulation Oversees the buying and selling of government securities as a form of monetary policy Supervises and regulates member banks
IS-LM-PC Analysis
The IS (Investment Saving), LM (Liquidity Preference- Money Supply), and PC (Philips Curve) is the model that looks at the dynamics of output and inflation. It takes into account the central bank policy decision to adjust the inflation and real interest rate in the economy. It enables the economist to weather to priorities between employment and inflation rate analyzing the model. It is a practice-driven approach adopted by economists worldwide.
IS-LM Analysis
The term IS stands for Investment, Savings, and LM stands for Liquidity Preference, Money Supply. Therefore, the term IS-LM model is known as Investment Savings – Liquidity preference money Supply. This model was introduced by a Keynesian macroeconomic theory which shows the relationship between the economic goods market and loanable funds market or money market. In other words, it shows how the market for real goods interacts with the financial markets to strike a balance between the interest rate and total output in the macroeconomy. This particular model is designed in the form of a graphical representation of the Keynesian economic theory principle. The output and money are the two important factors in an economy.
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