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    DandyDeon's Avatar
    DandyDeon Posts: 5, Reputation: 1
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    #1

    Nov 26, 2007, 06:25 AM
    Economics homework
    Most economists believe that a permanent increase in the money supply will generate inflation and make the prices of everyday goods and services higher than they are today. Is this scenario likely given the large reserve injections in the U.S. and world money markets? Why or why not?
    DandyDeon's Avatar
    DandyDeon Posts: 5, Reputation: 1
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    #2

    Nov 26, 2007, 06:27 AM
    Would the Fed's reserve injections have any effect on credit markets or the economy ?
    Some economists believe that markets are highly efficient in the sense that prices and interest rates adjust immediately to guarantee full employment. If this were true, would the Fed's reserve injections have any effect on credit markets or the economy as a whole?Please substantiate your answers with reasons.
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    DandyDeon Posts: 5, Reputation: 1
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    #3

    Nov 26, 2007, 06:28 AM
    The Federal Reserve intervene every time the stock market takes a plunge?
    For the most part, the Federal Reserve's main concern is first and foremost inflation, and secondarily unemployment. Given these two goals, should the Federal Reserve intervene every time the stock market takes a plunge? Please substantiate your answer with reasons.
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
     
    #4

    Nov 26, 2007, 06:29 AM
    What do you think ?
    DandyDeon's Avatar
    DandyDeon Posts: 5, Reputation: 1
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    #5

    Nov 26, 2007, 06:40 AM
    Yes, increase in money supply will generate inflation in my opinioon. But could you provide reasons
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
     
    #6

    Nov 26, 2007, 06:41 AM
    Please refer to This Announcement
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    DandyDeon Posts: 5, Reputation: 1
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    #7

    Nov 26, 2007, 07:12 AM
    In my research I would like to know whether the amount of money the Fed can create through purchasing government bonds is nearly limitless?
    NeedKarma's Avatar
    NeedKarma Posts: 10,635, Reputation: 1706
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    #8

    Nov 26, 2007, 07:30 AM
    What does your textbook say?
    nadeem062's Avatar
    nadeem062 Posts: 1, Reputation: 1
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    #9

    Nov 27, 2007, 09:30 AM
    Initially I thought Dr Vasudev Iyer has copied questions from here,
    But I noticed DEON...

    Good idea

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