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What happens in Freezone if the central bank lowers the federal funds rate? Do you recomme

What happens in Freezone if the central bank lowers the federal funds rate? Do you recomme

What happens in Freezone if the central bank lowers the federal funds rate? Do you recommend that the central bank lower the interest rate? Why?

9.What happens in Freezone if the central bank conducts an open market sale of securities? How will the interest rate change? Do you recommend that the central bank conduct an open market sale of securities? Why?

10.Suppose that inflation is rising toward 5 percent a year, and the Fed, Congress, and the White House are discussing ways of containing inflation without damaging employment and output. The President wants to cut aggregate demand but to do so in a way that will give the best chance of keeping investment high to encourage long-term economic growth. Explain the Fed’s best action for meeting the President’s objectives.

Abhinav 05-Dec-2019

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