I have an assignment about economics plz help

Question

You are on the Federal Open Market Committee.

1.Asumme u r member of FOMC. the economic data indicate that inflationary pressures r growing in the economy. What policy would you recomend regarding the target federal fund rate? Why?

2. How in Practise can the fed achieve the change in the target federal fund rate you recommend in answering ques 1?

3. Illustarte your response to quest 1 with the graph of the money market showing the impact of policy ou recomend to prevent inflation. label each axis and label the curve.

plz help me with this. it is due tomorrow. any info will helo plzzzzzzzzzz

Answer 1

Check out: http://en.wikipedia.org/wiki/Money_suppl... or go to wikipedia.org and type in money supply, read all relevant topics, the info there should really help.

As a side note: The Federal Open Market Committee control the money supply in an economy and so they can take various measures depending on the demand of money (money in peoples hands and assets) and the money supply (amount of money in the federal reserve).