(Answered) Assignment usa macro economicbulldo you feel that the

Economics

Assignment: USA Macro Economic

• Do you feel that the interest rate that is "set" by the Federal Reserve is too low?

- Provide an argument why interest rates cannot go lower - and need to be raised during the next Board of Governors meeting.
- How would you advise the board, as Chairperson, to go about implementing a raise in the interest rate?
- Explain and discuss this interest rate that you're trying to raise.

• What are the feedback effects of this interest rate increase on the US economy?

- Look at this in terms of the Aggregat Expenditure Equation - C(Household Consumption), I(Investment), G(Government spending), NX(Net Exports).

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