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Monetary Policy - A Simulation Game First, you need to play the monetary policy game on this link:http://sffed-education.org/chairman/(Links to an external site.) If you are successful at keeping the...

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Monetary Policy - A Simulation Game

First, you need to play the monetary policy game on this link:http://sffed-education.org/chairman/(Links to an external site.)

If you are successful at keeping the inflation rate between 1% and 2% and the unemployment rate under 5.5%, then you should be reappointed as the Chair of the Board of Governors of the Federal Reserve System.

Write down your findings from the game. In particular state the unemployment rate and the inflation rate at the end of your game. You will need to submit them along with your game's outcome. After playing the game at least 3 times, state whether you were reappointed or dismissed? Why?You may play the game as many times as you wish. For maximum points, play the game until you figure out how to become reappointed as Fed guru and submit those results.

In order to receive full credit for this discussion, you need to (1) play the Monetary Policy game, and (2) submit your answers to the above questions, along with a clear and detailed narrative of at least 6 sentences highlightingwhat you learned from this game and all the strategies that you used. Grading will depend onhow well your narrative reflectson any lessons learned and any strategies you used on your several attempts.

Please change the title of your response to reflect the main idea in the sentences that you post.

Answered Same Day Oct 27, 2021

Solution

Dr. Smita answered on Nov 10 2021
164 Votes
The Fanatic Fed Fund Rate: Influential on Inflation
The Federal Fund rate refers to the short term interest rate at which banks can bo
ow money from another bank. When the fed fund rates are low, banks can bo
ow money from other banks at a lower interest rate. The bo
owed money is given out as loans to the general public at a higher rate of interest leading to the profit margins of the banks. Hence, a low fed fund rate implies more money circulation in the economy. Alternatively, it is low fed fund rate is synonymous with expansionary...
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