If the FED want to stabilize output then FED has to decrease the money supply if the net exports were increased.
Given that there was a large increase in net exports.
We are required to advise the FED about the work he should do to stabilize the output.
The increase in exports shows that there had huge amount of money in the economy. So to stabilize the output FED has to decrease the output and to decrease the output FED has to decrease the money supply.
FED can decrease the money supply in various ways as under:
- Increase in interest rate.
- Selling of government securities.
There are many more ways to decrease the money supply. When the money supply decreases the people in the country may not be able to produce more goods and the production of goods decreases.
Hence if the FED want to stabilize output then FED has to decrease the money supply if the net exports were increased.
Learn more about money supply at brainly.com/question/3625390
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Answer: a. Dynamic forecasting
Explanation:
Dynamic forecasting has to do with when the forecasted value or the predicted value of the dependent variable that us lagged in a research is used rather than using the actual value.
The dynamic forecasting technique fits situations where more recent events carry greater influence.
Answer:
C,<em> Brain drain</em>
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Explanation:
<em>What is brain drain?</em> Brain drain according to Wikipedia is a problem described as the process in which a country loses its most educated and talented workers to other countries through migration. Negative effects include loss of tax revenues by the home country, and a loss of key health and education service professionals. <em>A brain drain can result from turmoil within a nation, the existence of favorable professional opportunities in other countries, or from a desire to seek a higher standard of living. </em>Johanna's brain drain came as a result of more favorable conditions in the U.S.
