Need help with economics homework problem!?

Need help with economics homework problem!?

Here's the question:

"Suppose you are a member of the board of Gov. of the Federal Reserve System. The economy is experiencing a sharp and prolonged inflationary tend – what changes in (A) the reserve ration, (B) the discount rate and (c) open market operations you would recommend? Explain in each acase how the changes would affect commercial bank reserves, the money supply, interest rates and aggregate demand and net exports? What fiscal policy should the Gov follow to work with the monetary policy that you suggest? What is the fiscal policy effect on net exports?"

Can someone please help me with this? I'd appreciate it.

3 Answers

  • Maus
    Lv 7
    9 years ago

    Actually, try the economics section. I think the reserve ratio should be increased, that way banks have to keep more money and loan out less, decreasing the money supply and raising the interest rate. Or something.

  • Megan
    Lv 4
    9 years ago

    You might get better responses asking this in the homework help section! Hope this helps and good luck on your homework!


  • Anonymous
    9 years ago

    Shouldn't this be in the homework section? -_-

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