Answer the questions attached below. According to the instructions given.

OPPORTUNITY COST WORKSHEET 2 Below, you are provided Gerardo's Production Possibilities Frontier between biology homework and economics homework before and after he attends economics tutoring sessions. You will use this information to identify how a technological innovation that affects production of only one good alters the opportunity cost associated with producing both goods. PPF1 depicts Gerardo's PPF between biology homework and economics homework before he attends economics tutoring sessions. PPF2 depicts Gerardo's PPF between biology homework and economics homework after he attends economics tutoring sessions. 14 Economic Homework (in pages] 10 12 14 Minlazy Homework [in pages) Part 1: Before Gerardo attends economics tutoring sessions, what is his opportunity cost of producing an additional page of economics homework? Part 2: Before Gerardo attends economics tutoring sessions, what is his opportunity cost of producing an additional page of biology homework? * Part 3: After Gerardo attends economics tutoring sessions, what is his opportunity cost of producing an additional page of economics homework?ucture.com/courses/10845/discussion_topics/20060 The standard Federal Reserve (Fed) monetary tools identified in the textbook are still in place, albeit they are less effective than they were in the 20th Century. This is mostly due to the unprecedented actions the Fed took after the financial crisis a decade ago to avoid a Great Depression-like financial meltdown. Fed intervention following the financial crisis was required because the Fed is Congressionally mandated through the Federal Reserve Act of 1978 (and later amendments] to undertake policies directed at simultaneously targeting a low inflation rate (under 3:6), maintaining full labor employment (under 5% unemployment], and supporting stable real economic growth lover 3%%). This is a tough legislative directive to place on the Fed, particularly when, through the democratic process, we the people may be demanding that the legislative branch of government fulfill conflicting social, judicial and/or military objectives, Hitting on all three cylinders at once almost demands coordination of Reserve and Congressional policies. Problem: The current environment has essentially sterilized the effectiveness of traditional open market operations for targeting the federal funds rate. Historically. when labor market conditions tightened and too much upward pressure was being placed on prices, the Federal Reserve Open Market Committee [FOMC) simply engaged in systematic increases in the federal funds rate through strategic open market purchases of Treasury securities (short term Treasury Bills, primarilyk. The desired result was always lower inflation, increased labor unemployment, and slower real economic growth. Do you think that the Fed's current approach to raise the federal funds rate will work this time, particularly given that they are starting at a point where the real growth rate is already below 3%6? Why of why not? What is different this time? If successful, do you believe the effects on the economy will be similar to what we have normally experienced during previous periods of Fed tightening? Search entries of author Unread HIML Editor B /VA. IE 3 X, IEFed keeps policy unchanged, but inching closer to rate hikes WASHINGTON (AP) April 20, 2021 As widely expected, the Federal Open Market Committee {FOMC} decided to push its target range for the fed funds rate between 0.00% and 0.25%. The Fed's monthly purchase rate for Treasury securities and mortgage-backed securities was announced at $80 billion and $40 billion, respectively, a level higher that exceeds anticipated demand for loanable funds. The Fed's released announcement stated "The Federal Reserve will continue to purchase securities and bonds until substantial further progress has been made toward the Committee's employment goals.\" But Fed watchers anticipate a quick return to more neutral monetary policy if there is a strong economic recovery in 2021. 5A. From information in the article, state the two specic monetary tools the Federal Reserve is using to conduct monetary policy. SB. Depict the US. money market. Indicate initial supply, demand, and equilibrium price and quantity with subscript \"1". Return to the money market in SA, and change the market consistent with information in the article. Indicate new supply, demand, and equilibrium price and quantity with subscript \"2\". 5C. Beginning with changes in the money market, set out two intended causal chain effects on the economy from the announced actions of the Federal Reserve. 5D. Using a Keynesian Macro Model, show the theorized effect of the decisiOn of the Federal Reserve on the U.S. economy. Question (3) [10%] Please briefly explain the following: a. Explain why there is a negative relationship between the amount of money you hold and the interest rate, thus money demand curve is downward sloping. (5%) b. Please describe a situation when the money demand curve would shift to the right. (5%) Question (4) During the 2008/2009 Financial Crisis in the U.S., the Fed (Central Bank of the U.S.) had cut interest rates across the board (in the following graph, we use the time-series data of the effective federal funds rate as an example). (Q4a-5%) Please write down the Fed rule and explain briefly the different factors that may affect the Fed's interest rate decision. (Q4b-10%) Please identify the FOMC press release from January 22, 2008. What was the Fed's action on interest rate on that day? Which factor(s) were cited in the Fed's decision to do so? [Hint: FOMC press release accessed at https://www.federalreserve.govewsevents/pressreleases/monetary20080122b.htm/ FRED - Metin Factoral Fast Rats Parent 3002 204 3012 201 1 (Q4b-15%) After year 2016, the Fed decided to raise interest rate gradually (see the figure above). Based on the course materials, please list out the three traditional monetary policy tools that the Fed can use to control the interest rate via changing the money supply. /Hint: You have to be precise about the directions of the policy changes that are consistent with the interest rate trends during 2016-2018. For example, if open market operations, whether it should be purchase OR sales of the bonds)