ECO372 Week 3 Discussion s

Question: #7967

ECO 372 Week 3 DQs.

ECO 372 Week 3 DQ 1

Suppose the Fed wanted to reduce aggregate demand (to fight inflation) and the president wanted to increase total expenditure (to fight unemployment). What kind of action would each take? (NOTE: There are 2 separate entities here with 2 separate goals. You need to tell me what policy would be initiated by EACH entity separately.) What effects would their combined actions have on GDP? What effect would this have on your industry?

ECO 372 Week 3 DQ 2

How does federal deposit insurance encourage greater risk taking by banks? Could the banking system function without government deposit insurance? How? How would you personally and your firm be affected if there was no federal deposit insurance? What would you/your firm do different?

Solution: #7965

ECO372 Week 3 Discussion s

ECO 372 Week 3 DQs. ECO 372 Week 3 DQ 1 Suppose the Fed wanted to reduce aggregate demand (to fight inflation) and the president wanted to increase total expenditure (to fight unemployment). Wh...