Consider the actions of the fed in response to the great recession. which of the following scenarios should the fed be worried about if its objective is increasing aggregate demand?

choose one:

a. people expect the fed to respond to the downturn with an expansionary policy.
b. increasing the money supply could decrease aggregate demand.
c. monetary policy is effective in the long run.
d. small changes in the federal funds rate would destabilize the economy.

What is the best definition of a conclusion?

Overspeculation and a decrease in consumer confidence are both leading factors of: ?

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above