You
are the Chairperson of the Federal Reserve, the date is June 2008 and a
recession is ahead....

Question

You
 are the Chairperson of the Federal Reserve, the date is June 2008 and a
 recession is ahead. Using the monetary tool(s) of your choice what 
would you do? You need to graph a money demand and supply graph, an 
Investment graph, and a GDP graph to show how monetary policy effects 
GDP. You also need to use the money multiplier, MPC and the GDP 
multiplier on the GDP graph.

David · Accepted Answer

You are the Chairperson of the Federal Reserve, the date is June 2008 and a recession is ahead. Using the monetary tool(s) of your choice what would you do? You need to graph a money demand and supply graph, an Investment graph, and a GDP graph to show how monetary policy effects GDP. You also need to use the money multiplier, MPC and the GDP multiplier on the GDP graph.
As the Chairperson of Fed I am responsible for the monetary policy stance and can use tools available for this purpose.  The scenario of the future looks bleak as the economy faces risng unemployment and declining investment and consumption spending.

You are the Chairperson of the Federal Reserve, the date is June 2008 and a recession is ahead. Using the monetary tool(s) of your choice what would you do? You need to graph a money demand and supply...

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