economics

posted by .

"The Fed should simply increase the money supply at the same rate that the full employment economy grows, and the government should desist from any stabilizing urges." What school of thought would make this suggestion, and how do economists of that school justify that prescription?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    Explain how it's possible for actual GDP to temporarily exceed full-employment GDP. "full-employment GDP" is a defined concept. Full employment does not mean 100% employment -- an economy has a "natural rate of unemployment" and reflects …
  2. Economics

    When the economy is at full employment, should the federal government run a budget deficit, surplus . Or neither?
  3. Macroeconomics

    Suppose the Fed wishes to use monetary policy to close an expansionary gap. a. Should the Fed increase or decrease the money supply?
  4. Economics help

    What is the short-run effect on the exchange rate of an increase in domestic real GNP, given expectations about future exchange rates?
  5. Economics

    1. Suppose that the money supply is currently $500 billion and Fed wishes to increase it by $100 billion. Given a reserve ratio of 0.25 what should it do?
  6. economics

    The Fed should simply increase the money supply at the same rate that the full employment economy grows, and the government should desist from any stabilizing urges." What school of thought would make this suggestion, and how do economists …
  7. macroecon

    Assume that there is equilibrium in both the goods and the money market at all times. Suppose that the president of the United States has decided to start a war. The government will have to increase spending to pay for weapons, equipments, …
  8. macroecon

    Assume that there is equilibrium in both the goods and the money market at all times. Suppose that the president of the United States has decided to start a war. The government will have to increase spending to pay for weapons, equipments, …
  9. economics

    The Money Multiplier (MM) is exemplified. Why do you think the FED evaluates the money multiplier when making decisions with regard to the money supply?
  10. Macroeconomics

    (Monetary Control) Suppose the money supply is currently $500 billion and the Fed wishes to increase it by $100 billion. a. Given a required reserve ration of 0.25, what should it do?

More Similar Questions