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Terry Crew Session 11 - This can not be predicted but you...

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Terry Crew Econ 201 Session 11 11/7/2010 Fed Guru After taking this game through a couple rounds, I felt like I was fairly successful. Both times, it said that I was reappointed, which was great. I found that doing a dramatic change only made things worse, no matter if it was lowering or highering the given rate. If you kept things consistent, then unemployment would slowly fall, but the federal reserve would flat line. A couple of times, I would drop the rate for a session, and then raise it back up again. This led to the game saying that there was like a tax refund or something, which I thought was interesting. During my first game, I went through an oil crisis, and this made me remember that there are dramatic events in the nation that will throw things off dramatically.
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Unformatted text preview: This can not be predicted, but you just have to do your best to keep things normal and consistent. Both times I was re-elected, and both times it gave me the same reason that I kept things consistent and because of that the people loved me. It reminded me of real life where there are people that come in and change everything dramatically, and this type of change is not always successful in a system that is used to dealing with things in a very specific way. There was one time that there was an oil crisis, so I dropped the rate dramatically down to 2.0, just to see what would happen. The result was that inflation flew out the roof, and the reserve also plummeted, but unemployment also fell dramatically. I thought that this was interesting to note....
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