Tutorial8

Tutorial8 - Chapter 13 1. Briefly identify and discuss a...

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Chapter 13 1. Briefly identify and discuss a range of issues that a central bank would consider when monitoring its current monetary policy settings. 2. Within the macroeconomic context of interest rate determination there are three distinct effects of a change in monetary policy. Explain and give examples of each of the three effects. 3. A central bank will typically implement monetary policy settings in order to achieve certain economic outcomes over a business cycle. Explain the structure of a business cycle. Further, discuss and give examples of the different economic indicators that may give an insight into the stage of a business cycle. 4. The financial markets often use the loanable funds approach when forecasting interest rates. Describe the concept of the loanable funds approach to interest rate determination. In your answer identify and explain the elements that comprise the supply of, and the demand for, loanable funds.
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Tutorial8 - Chapter 13 1. Briefly identify and discuss a...

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