EC 470: Monetary Policy
Problem Set 1 - Ch. 1, 4-5
Due Tuesday, October 13
Chapter 1
1. Is everyone worse off when interest rates increase? Explain.
2. Why are bonds so important to the study of monetary policy?
3. What is the difference between fiscal an
EC 470: Monetary Policy
Problem Set 3 - Ch. 15 - 16
Chapter 15
1. Use the supply and demand for bank reserves to illustrate the eects of:
a) an open market sale by the Fed
b) a decrease in the discount rate
c) an increase in required reserves
Be sure to s
EC 470: Monetary Policy
Problem Set 4 - Ch. 19, 22 - 24
blahblah
Chapter 19
1. a) The quantity theory of ination says that = % M. What assumptions are
required to go from the equation of exchange to this theory?
b) If velocity and aggregate output are con
EC 470: Monetary Policy
Problem Set 3 - Ch. 15 - 16
Answer Key
Chapter 15
1. Use the supply and demand for bank reserves to illustrate the eects of:
a) an open market sale by the Fed
b) a decrease in the discount rate
c) an increase in required reserves
B
EC 470: Monetary Policy
Problem Set 2 - Ch. 13 - 14
Answer Key
Chapter 13
1. How does the Feds structure allow it to represent both public- and private-sector interests?
Members of the Board of Governors (as well as the Chair of the Board) are appointed b
EC 470: Monetary Policy
Problem Set 2 - Ch. 13 - 14
Chapter 13
1. How does the Feds structure allow it to represent both public- and private-sector interests?
2. Why is the New York Fed the most important of the Federal Reserve banks?
3. a) How do Fed mem
EC 470: Monetary Policy
Problem Set 1 - Ch. 1, 4-5 Answer Key
Due Tuesday, October 13
Chapter 1
1. Is everyone worse o when interest rates increase? Explain.
No. Higher interest rates are bad for borrowers but good for lenders. Remember that
interest rate
EC 470: Monetary Policy
Problem Set 1 - Ch. 1, 4-5
Due Tuesday, October 13
Chapter 1
1. Is everyone worse o when interest rates increase? Explain.
2. Why are bonds so important to the study of monetary policy?
3. What is the dierence between scal and mone
EC470/570:MonetaryPolicy
ChadFulton
June28,2016
Chapter15:Toolsof
MonetaryPolicy
TheMarketforReserves
The market for reserves is where the Federal Funds Rate is
determined
We will study this market in terms of supply of reserves and
demand for reserves
Th
EC470/570 - Monetary Policy - Quiz 1
Name: KEY
Instructions: Answer four of the following six questions.
Grading: Each question was worth 10 points, so the quiz overall was out of 40 points.
Note: There are many possibly correct answers to these questions
EC 470: Monetary Policy
Problem Set 4 - Ch. 19, 22 - 24
Chapter 19
1. a) The quantity theory of inﬂation says that 11' = %AM. What assumptions are re-
quired to go from the equation of exchange to this theory?
The equation of (rxdiange says that; M. x V r