When the economy is in recession, does the Fed want to raise the interest rate so as to increase aggregate demand and increase real GDP? Explain your answer.

When the economy is in recession, does the Fed want to raise the interest rate so as to increase aggregate demand and increase real GDP? Explain your answer.

 

#Parkin #11edition #MonetaryPolicy #Chapter31

Monetary Policy

 

In the short run, if the Fed wants to fight a recession, should it buy or sell government securities? Why?

In the short run, if the Fed wants to fight a recession, should it buy or sell government securities? Why?

#Parkin #11edition #MonetaryPolicy #Chapter31

Monetary Policy

 

Explain how the Fed's response to a recession works its through the economy to ultimately affecting real GDP and the price level.

Explain how the Fed's response to a recession works its through the economy to ultimately affecting real GDP and the price level.  

#Parkin #11edition #MonetaryPolicy #Chapter31

Monetary Policy