1. You nave just been confirmed as a member of the Board of Governors of the Federal Reserve System. More than 12.5 million Americans are out of work. Forecasters are predicting negative growth (negative 1% in GDP) for the first quarter of 2021. What monetary policy recommendations do you make and what will be the effects of your recommendations. discount rate is one and also uses the interest rate Reserve Banks charge commercial banks for short-term loans. Federal Reserve lending at the discount rate complements open market operations in achieving the target federal funds rate and serves as a backup source of liquidity for commercial banks. The reserve requirement is a central bank regulation that sets the minimum amount of reserves that must be held by a commercial bank. An open market operation is an activity by a central bank to give liquidity in its currency to a bank or a group of banks. 2. "The United States can produce product X more efficiently than can Zambia. Yet we import X from Zambia."|