questions 1-4 You have been hired as a Marco Economist by the President of the United States to help evaluate the recentannouncement by Federal Reserve chairman Ben Bernanke that the FED will be increasing interest rates again.Ben Bernanke has justified the move on the grounds that the economy continues to be strong. Answer thefollowing questions. Provide a graphical explanation for your answers whenever possible.1. What is the fed trying to do?slow down the economystimulate the economyremains unchanged8. The exchange rate (the amount of foreigncurrency that a $ buys)?A. increaseA.В.С.B. decreaseC. remains unchanged2. How is the fed doing it?buying bondsselling bondsremains unchangedА.9. The U.S. dollar has?В.A. depreciatedB. appreciatedC. remained unchangedС.3. What happens to bond prices?increasedecreaseremains unchanged10. The currency in the other country has?A. depreciatedB. appreciatedC. remained unchangedA.В.С.4. What happens to the interest rate?A.В.increasedecreaseremains unchanged11. What impact will this have on exports?A. increaseB. decreaseC. remains unchangedC.

The central bank of the nation controls the inflation and monetary policy by using policies such as…

Answered: has justified the move on the grounds…

Business

Economics

has justified the move on the grounds that the economy continues to be

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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