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Other Fields Homework Help Economics Topic started by: valputin on Nov 29, 2015



Title: Targeting interest rates can be procyclical because
Post by: valputin on Nov 29, 2015
Targeting interest rates can be procyclical because
A) an increase in income increases interest rates, causing the Fed to buy bonds, increasing the monetary base and money supply, leading to further increases in income.
B) an increase in income increases the monetary base and money supply, causing the Fed to buy bonds to increase interest rates and income.
C) an increase in interest rates increases income, causing the Fed to buy bonds, increasing the monetary base and money supply, leading to further increases in income.
D) an increase in the monetary base increases the money supply, causing the Fed to buy bonds, increasing the monetary base and money supply, leading to further increases in income.


Title: Re: Targeting interest rates can be procyclical because
Post by: Meela on Nov 29, 2015
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Title: Re: Targeting interest rates can be procyclical because
Post by: valputin on Dec 14, 2015
Thank you


Title: Re: Targeting interest rates can be procyclical because
Post by: Meela on Dec 14, 2015
:) Good luck with the rest