Business, 10.05.2021 16:00 zoeatlowapple
During the late 70s and early 80s, the U. S. economy faced an inflationary period. The chairman of the Fed at that time, Paul Vocker, pursued a monetary policy to reduce inflation in the long run. The principal method used by the Federal Reserve to change the money supply is through open market operations.
Required:
a. Which policy would accomplish the Fed's goal to reduce inflation (buy or sell bonds) in the long run?
b. Use the Quantity Theory and Fisher Equation to explain what happens to the economy in the long run, particularly to: (i) prices and nominal output; (ii) real in GDP; (iii) inflation and nominal interest rate; (iv) money demand; (v) real interest rate
c. Discuss the advantages and disadvantages of this policy regarding the trade-off between unemployment, output and inflation in the long run.
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Alarge university wanted to study the relationship between completing an internship during college and students' future earning potential. prom the same graduating class, they selected a random sample of 80 students who completed an internship and 100 students who did not complete an internship and examined their salaries five years after graduation. they found that there was a statistically higher mean salary for the internship group than for the noninternship group. which of the following interpretations is the most appropriate? a. there could be a confounding variable, such as student major, that explains the difference in mean salary between the internship and no internship groups.b. we cannot infer anything from these data since the distribution of salaries is likely right skewed.c. you cannot draw any valid conclusions because the sample sizes are different.d. more students should complete internships because having an internship produces a higher salary.
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During the late 70s and early 80s, the U. S. economy faced an inflationary period. The chairman of t...
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