Question
( please help me out on this Econ assignment! I need 5 or more sentences for each question! Thank you) 1) What kinds ofMonetary policy(easy
( please help me out on this Econ assignment! I need 5 or more sentences for each question! Thank you)
1) What kinds ofMonetary policy(easy or tight) should be exercised under the recessionary gap? Give examples of policy tools in terms ofRRR(Required Reserve Ratio), DR(Discount rate) and OMP(open market policy)
2) Explain the" MONEY MULTIPLIER" of money creation including the formula and the process.
3) Compare discount rate, federal fund rate, prime(lending) rate and deposit rate.
4) Discuss the relationship between Bond price and interest rate.
5) if RRR(Required Reserve Ratio) is larger, is the Money Multiplier bigger or smaller? why? explain based on the formula.
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