During times of rising inflation, the Fed will undertake monetary policy or "tight money policy."

You will answer the following questions listed below. You will submit a Word document that will answer the following questions. Please submit your work using proper APA formatting. What actions should the Fed take if it believes the economy is about to experience a high rate of inflation? Now, let’s assume you are the President of the Fed and you have to make certain decisions in our economy. If the Fed orders a contractionary monetary policy, describe what will happen to the following variables relative to what would have happened without the policy: The money supply Interest rates Investment Consumption Net Exports The aggregate demand curve Real GDP The price level It should be minimum 3 word count with work cited page please.

if the current unemployment rate exceeds the natural rate the fed should increase the federal fund rate  true or false

Distinguish between the Keynesian theory and the neoclassical theory of money demand

The Federal Reserve publication that discusses forecasts for the economy is known as the

The Bank of Sweden inflation target is 2 % - which is a very common central bank goal. Why is it not zero percent?

How does inflation targeting help reduce the timeinconsistency problem of discretionary policy?

Actions by the Fed to fight rising rates of inflation likely will initially: (a) reduce long-term interest rates; (b) expand the size of the Fed’s balance sheet; (c) cause the Treasury Department to issue fewer repurchase agreements; (d) increase short-term interest rates

Which of the following are reasons why the Fed targets an inflation rate greater than 0%? Inflation enables the labor market to function more smoothly. enables the Fed to more effectively fight recessions. helps avoid the risk of deflation. at 0% keeps the purchasing power of consumers stable.

Describe the Fed’s monetary policy actions over the course of the  2020 year and  identify whether their actions were expansionary orcontractionary.