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raise interest rates & sell securities

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13y ago

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What actions would the fomc likely take if it were to pursue contractionary monetary policy using open market operations?

Please provide more information/context/clarification to help us answer this question. You can post your response in this answer text by clicking "Edit."


How might a country respond to a trade embargo?

It could pursue a policy of national self-sufficiency.


What do opportunity cost that aren't monetary include?

Opportunity costs that aren't monetary include time, resources, personal satisfaction, and potential experiences. For instance, choosing to spend an evening studying instead of socializing may lead to a loss of social connections and enjoyment. Similarly, deciding to pursue one career over another can result in missing out on different job satisfaction or work-life balance benefits. These non-monetary factors often play a crucial role in decision-making and overall well-being.


How is politics important to economics?

Politics affects economics in terms of what policy to pursue (such as monetary or fiscal policy)... should taxes be raised? should the government spend more on social welfare programs? should we restrict big businesses (many businesses are financial contributers to political parties... both conservative and liberal)? And of course through the rumored "political business cycle" which supposedly is when incumbent politicians take actions (when they are up for re-election) that makes favorable (but very short-term) economic standing. After elections, the economic policies supposedly return to normal (taxes go back up etc.)...


What influences government spending?

the macroeconomic objectives being pursued by the government will greatly influence government spending . a government aiming to reduce employment and promote economic growth is likely to pursue an expansionary fiscal policy , thus increasing government spending where as a government aiming to control inflation is likely to follow a contractions policy thus reducing its spending.