1. The Fed uses monetary policies to influence economic activity. However, the Fed does not have direct control over the pace of growth in the economy. Rather, it uses policy tools to accomplish this task indirectly. One of those policies is the Open Market Operations. Open Market Operations involve the buying and selling of government debt (Treasury Bills, Notes, and Bonds) by the Fed. How does Open Market Operations result in stimulation of the economy – think in terms of money multiplier effect.Watch the Money Multiplier video in the week’s assigned required readings for in depth knowledge of the topic2.The Fed has four main tools of monetary tools it can use to alter the reserves of commercial banks:Open-market operationsThe reserve ratioThe discount rateInterest on reservesDiscuss one of these four tools and how it alters the money reserves of commercial banks3.What is the difference between absolute and comparative advantage? How do these factors influence international trade between nations?4.Please watch the video below. It simplifies trade imbalance due to Currency Exchange rateChanges in the dollar’s exchange rate–the price of foreign currencies in terms of the US. dollar–may affect US. exports and therefore aggregate demand and GDP growth. From a business perspective, how does exchange rate affect direction of trade? What is the likely impact of change in direction of trade on US GDP?https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/currency-tutorial/v/currency-effect-on-trade5.Assume that you are hired as an analyst by a manufacturer planning to open a factory in Ghana to process Ghanaian raw agricultural produce for export. Access to cheaper production resources (labor, raw material, land, etc.). The manufacturer wishes to determine whether cheap resources alone would guarantee success in global trade of the final product. What other factors should the manufacturer consider in making his decision – think in terms of absolute and comparative advantage, currency exchange rate etc. critical to successful production and export of the final products6. How do economists integrate the international sector (exports and imports) into the aggregate expenditures model?7. How do economists integrate the public sector (government expenditures and taxes) into the aggregate expenditures modehttps://portal.phoenix.edu/medialibrary/videodetai… here is the video needed to answer a few questions. These questions does not have to be APA. They can be put on a word document with question and answer beneath question.
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