2) Identify the effect of inflation/deflation on interest rates (short/long term) and on each of the components of GDP,

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2 Identify The Effect Of Inflation Deflation On Interest Rates Short Long Term And On Each Of The Components Of Gdp 1 (50.83 KiB) Viewed 30 times

2) Identify the effect of inflation/deflation on interest rates (short/long term) and on each of the components of GDP, namely C, I, G, and NX (i.e. net exports including domestic currency valuation). 3) Describe the FED's tools of monetary control and how it can either direct/indirectly influence the money supply and the monetary base? How do the FED's tools and commercial banking oversight direct monetary policy, interest rates, liquidity and overall aggregate demand (GDP). 4) Explain the market (supply and demand) for loanable funds and the role interest rate plays. Provide examples of tax policy changes that increase incentives augmenting savings and investment. Provide commentary and graphical analysis documenting interest rate/loanable fund changes. Refer to Gross Private Domestic Investment Expenditure and Investment Spending Function. Expand your analysis to include government budget deficits and surpluses to the supply/demand of loanable funds and describe the "Crowding Out" effect on private investment spending on GDP?