Macroeconomics

1.Assume there is a recessionary gap. Be sure to outline what this gap is and provide at least three policies the federal government could pursue to remediate the issue.

2. If a central bank wanted to introduce a new form of money into their economy, what would they need to take into consideration for the money to be successful?

3. When the central bank creates money, it makes a profit off of this process. Why does the United States allow the central bank to make money by creating money and how does this help to ensure the stability of the money supply?

 

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