homework2

homework2 - will not tell you exactly where since the goal...

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Homework 2 Intermediate Macro policy. Fortunately, there is much information on the web where you can learn about these details. 1. (5 points) You must prepare a memo (aim for a max of 10 pages) describing the basic structure of the federal government taxes and expenditure: how much the federal gov- ernment gets in taxes every year, which taxes get that revenue, where money is spent, about how to organize the information in a way that is e/ective yet comprehensive. Good places to start looking for information include, among other, the Congress Budget O¢ ce, http://www.cbo.gov and the OMB, http://www.whitehouse.gov/omb . Now we want to learn a bit more about how the fed actually conducts monetary policy. The answer to these questions can be found at the Federal Reserve Board web page (I
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Unformatted text preview: will not tell you exactly where since the goal of this part of the homework is that you familiarize yourself with that web page). Please write concise answers. 2. (1 point) What are the structure and functions of the FOMC? 3. (1 point) What is an open market operation? What are the main types of open market operations? 4. (1 point) Find a series for the intended Federal Funds Rate from 1990 until today and plot it. Why we call it an intendedrate? Which main movements do you see in it? 5. (1 point) Find the e/ective federal funds rate and plot it (in a second graph) along the intended rate. What does this graph say about the ability of the fed to conduct open market operations? 6. (1 point) What type of new liquidity facilities have been created by the Fed since last year to address the current &nancial crisis? 1...
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This note was uploaded on 05/13/2010 for the course ECON 110D taught by Professor Schmitt-grohe during the Spring '08 term at Duke.

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