The former chairman of the Federal​ Reserve, Alan​ Greenspan, used the term​ "irrational exuberance" in 1996 to describe the high levels of optimism among stock market investors at the time. Stock market indexes such as the​ S&P Composite Price Index were at an​ all-time high. Some commentators believed that the Fed should intervene to slow the expansion of the economy.   Why would central banks want to clamp down when the economy is​ growing?

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A: Macroeconomic policy refers to the policy that is involved with the operation of the economy as a…

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A: Philosophy of Ben Bernanke As the chairman,  Ben Bernanke took an aggressive and experimental…

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Q: stablishin

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Q: Which of the following is a traditional tool used by the Fed during recessions?

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Q: Why is there a lag between the Fed’s actions and the economy’s response?

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Q: What happens to the money supply when the Fed buys government bonds? According to the theory of…

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Q: Suppose the Fed decides to implement expansionary monetary policy. This will likely result in a…

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Q: describe the actions the Federal Reserve took to maintain a healthy economy during the recent…

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Q: Why do economists believe that Federal Reserve policy changes can move the stock market?

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Q: Why does the Fed manipulate the money supply ? Why might a price "freeze" help monetary policy to…

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Q: Suppose the U.S. economy is initially at long run equilibrium, when there is an unexpected economic…

A: Since you have posted a question with multiple parts, we will solve only the first part. To get…

Q: Are you concerned about the inflation come back due to such easy monetary policy with zero interest…

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Q: Suppose that inflation is 2 percent, the federal funds rate is 4 percent, and real GDP falls 2…

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Q: Suppose the U.S. economy is initially at long run equilibrium, when there is an unexpected economic…

A: Since you have posted a question with multiple parts, we will solve only the first part. To get…

Q: The Fed can directly affect long-term interest rate by setting the policy rate target range. True or…

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Q: How does rule-based monetary policy differ from discretionary monetary policy(that is,monetary…

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Q: Do you think the central bank should conduct policy using rules or discretion? Explain.

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Q: Describe how a central bank conducts a contractionary monetary policy to slow down the economy

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Q: Does the lender of last resort function of central banks introduce moral hazard into the financial…

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