The major responsibilities of Fed.

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Answer 1

Question

Chapter 13, Problem 1QP

To determine

The major responsibilities of Fed.

Expert Solution & Answer

Explanation of Solution

The main responsibility of Fed is to control the money supply in the economy through the execution of the monetary policy. The Fed also performs the following functions. It controls the money supply in the economy, issues currency, provides check clearing services, holds depository reserves, supervises member banks, acts as Government’s bank, acts as lender of last resort to other banks, and conducts auction on the Government securities.

Economics Concept Introduction

Fed: Fed is the central bank of the US. Its full form is the Federal Reserve Bank. They control the economy through their monetary policies.

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Short Description Fiscal Policy Graph Details Shown is a Fiscal Policy diagram with the variable Real GDP (billions of dollars) on the x-axis and the variable Price Level on the y-axis. The x-axis is scaled from 0 to 800 billion dollars with an increment of 40 billion dollars, and the y-axis is scaled from 30 to 150 units with an increment of 5 units. Object Details On the graph we have:Four Line Objects:An upward sloping Aggregate Supply, AS line with two endpoints:Point 1 at (160, 70)Point 2 at (720, 140)A downward sloping Aggregate Demand, AD1 line with two endpoints:Point 1 at (80, 110)Point 2 at (640, 40)A vertical Long-run Aggregate Supply, LRAS with two endpoints:Point 1 at (400, 145)Point 2 at (400, 30)A downward sloping Aggregate Demand, AD line with two endpoints:Point 1 at (720, 60)Point 2 at (160, 130)Two Reference Points:Lines AS, AD, and LRAS intersect at (400, 100)Lines AS and AD1 intersect at (280, 85) a. How much does aggregate demand need to change to restore the…

Fiscal Policy Graph Details Shown is a Fiscal Policy diagram with the variable Real GDP (billions of dollars) on the x-axis and the variable Price Level on the y-axis. The x-axis is scaled from 0 to 1000 billion dollars with an increment of 50 billion dollars, and the y-axis is scaled from 0 to 180 units with an increment of 10 units. Object Details On the graph we have:Four Line Objects:An upward sloping Aggregate Supply, AS line with two endpoints:Point 1 at (200, 40)Point 2 at (800, 160)A downward sloping Aggregate Demand, AD line with two endpoints:Point 1 at (200, 160)Point 2 at (800, 40)A downward sloping Aggregate Demand, AD1 line with two endpoints:Point 1 at (350, 170)Point 2 at (900, 60)A vertical Long-run Aggregate Supply, LRAS line with two endpoints:Point 1 at (500, 170)Point 2 at (500, 0)Two Reference Points:Lines AS and AD1 intersect at (600, 120)Lines AS, AD, and LRAS intersect at (500, 100) a. How much does aggregate demand need to change to restore the…

a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? $ billion b. If the MPC is 0.6, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? $ billion Suppose instead that the MPC is 0.95. c. How much does aggregate demand and government purchases need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ billion and government purchases need to change by $ billion.

Answer 2

Question

Chapter 13, Problem 1QP

To determine

The major responsibilities of Fed.

Expert Solution & Answer

Explanation of Solution

The main responsibility of Fed is to control the money supply in the economy through the execution of the monetary policy. The Fed also performs the following functions. It controls the money supply in the economy, issues currency, provides check clearing services, holds depository reserves, supervises member banks, acts as Government’s bank, acts as lender of last resort to other banks, and conducts auction on the Government securities.

Economics Concept Introduction

Fed: Fed is the central bank of the US. Its full form is the Federal Reserve Bank. They control the economy through their monetary policies.

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Answer 3

Question

Chapter 13, Problem 1QP

To determine

The major responsibilities of Fed.

Expert Solution & Answer

Explanation of Solution

The main responsibility of Fed is to control the money supply in the economy through the execution of the monetary policy. The Fed also performs the following functions. It controls the money supply in the economy, issues currency, provides check clearing services, holds depository reserves, supervises member banks, acts as Government’s bank, acts as lender of last resort to other banks, and conducts auction on the Government securities.

Economics Concept Introduction

Fed: Fed is the central bank of the US. Its full form is the Federal Reserve Bank. They control the economy through their monetary policies.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 13, Problem 1QP

To determine

The major responsibilities of Fed.

Expert Solution & Answer

Explanation of Solution

The main responsibility of Fed is to control the money supply in the economy through the execution of the monetary policy. The Fed also performs the following functions. It controls the money supply in the economy, issues currency, provides check clearing services, holds depository reserves, supervises member banks, acts as Government’s bank, acts as lender of last resort to other banks, and conducts auction on the Government securities.

Economics Concept Introduction

Fed: Fed is the central bank of the US. Its full form is the Federal Reserve Bank. They control the economy through their monetary policies.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 1QP

To determine

The major responsibilities of Fed.

Expert Solution & Answer

Explanation of Solution

The main responsibility of Fed is to control the money supply in the economy through the execution of the monetary policy. The Fed also performs the following functions. It controls the money supply in the economy, issues currency, provides check clearing services, holds depository reserves, supervises member banks, acts as Government’s bank, acts as lender of last resort to other banks, and conducts auction on the Government securities.

Economics Concept Introduction

Fed: Fed is the central bank of the US. Its full form is the Federal Reserve Bank. They control the economy through their monetary policies.

Answer 6

Chapter 13, Problem 1QP

To determine

The major responsibilities of Fed.

Expert Solution & Answer

Explanation of Solution

The main responsibility of Fed is to control the money supply in the economy through the execution of the monetary policy. The Fed also performs the following functions. It controls the money supply in the economy, issues currency, provides check clearing services, holds depository reserves, supervises member banks, acts as Government’s bank, acts as lender of last resort to other banks, and conducts auction on the Government securities.

Economics Concept Introduction

Fed: Fed is the central bank of the US. Its full form is the Federal Reserve Bank. They control the economy through their monetary policies.

Answer 7

Chapter 13, Problem 1QP

To determine

The major responsibilities of Fed.

Answer 8

Expert Solution & Answer

Explanation of Solution

The main responsibility of Fed is to control the money supply in the economy through the execution of the monetary policy. The Fed also performs the following functions. It controls the money supply in the economy, issues currency, provides check clearing services, holds depository reserves, supervises member banks, acts as Government’s bank, acts as lender of last resort to other banks, and conducts auction on the Government securities.