Unformatted text preview: increases. 10. My conclusion is that the economy is getting sluggish and is now in a recession. 11. This shows why the Fed was created but how ineffective it is currently in leading the economy in a better direction. 12. This illustrates that the separation of powers isn’t always necessarily good because it creates policy lag and even gridlock. 13. The First National’s reserves will increase while the FFR increases as it is related. 14. They were in conflict in January 2006 when the Fed raised the FFR target. 15. I believe that the FOMC maintained or lowered the target for the FFR. I believe this because they are using examples of “low inflation” and “elevated energy prices”....
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This note was uploaded on 04/06/2011 for the course US 1 taught by Professor Young during the Fall '07 term at UCSD.
- Fall '07