Basic Economic Concepts

Increase reserve requirements for banks significantly above current levels to absorb excess liquidity.

Engage in qualitative easing by purchasing private assets such as corporate bonds and securities.

Directly regulate prices of goods and services across all sectors limiting price growth at a fixed rate.

Lower federal funds rate below zero into negative territory encouraging banks not to hold excess reserves.

It remains constant since monetary policy primarily influences price levels rather than employment figures directly.

Unemployment drops sharply due to increased foreign direct investments attracted by high-interest rates offered in domestic banks.

Unemployment decreases as inflation stabilizes creating a more predictable business environment.

Unemployment may rise due to decreased consumption and investment resulting from higher interest rates.

The equilibrium price will remain stable since the significant change only negates one variable (supply) rather than both production technology.

The equilibrium price will typically rise because of reduced availability meeting the same level of desire or need.

There will be no noticeable impact as they're capable of absorbing fluctuations within particular markets.

The equilibrium price will decrease due to lower supply, which suggests less commercial viability and drives down value.

Increased overall consumption

No change in distribution patterns

Increase in concentration among the richer population

Decrease in concentration among the poorer population

Price elasticity of demand.

Price elasticity of supply.

Cross elasticity of demand.

Income elasticity of supply.

Reducing government spending significantly in all sectors except for workforce development and education programs.

Implementing a negative income tax that provides households with additional spending power during adjustment periods.

Mandating wage freezes across the board to prevent an inflation-wage spiral without directly impacting jobs.

Introducing a comprehensive trade policy to reduce imports enhancing domestic production and labor demand.

Estimated sales

Energy

Economic growth

Expectations of future price

Setting maximum tuition prices for all levels of education.

Increasing income taxes on college graduates specifically.

Privatizing all educational institutions for competitive markets.

Providing subsidies or grants to students or educational institutions.

Net exports increase because higher interest rates attract foreign investment, depreciating the domestic currency.

Net exports decrease due to decreased consumer spending domestically leading to less importation of goods.

Net exports remain unchanged as increased cost of borrowing counterbalances any changes in currency value.

Net exports decrease as higher interest rates appreciate the domestic currency making exports more expensive.

Increased taxation will necessarily deter foreign investment stalling technological advancements within industries.

It leads directly to inflated asset prices benefiting only those already holding significant wealth.

The shift towards lower deficits will signal distrust in governmental fiscal responsibility reducing business confidence.

It may disproportionately affect lower-income individuals who are more sensitive to decreases in government spending or increases in taxes.