The central bank of a country facing economic and financial market difficulties asks for your advice. the bank cut its policy interest rate to the effective lower bound, but it wasn't enough to stabilize the economy. drawing on the actions taken by the federal reserve during the financial crisis of 2007-2009, what might you advise this central bank to do? multiple choice
1) you should advise the central bank to use unconventional monetary policy tools such as quantitative easing. a pollcy in which the central bank alters the compostion of its balance sheet or credit easing, where aggregate reserves are provided beyond the level needed to lower the policy rate to zero. the central bank could also inform markets of its commitment to keep interest rates low (forward guidance).
2) because the central bank has hit the zero bound with its policy iinterest rate, there is nothing further it can do to influence economic and financial market conditions
3) in the face of severe economic weakness you should advise the central bank to increase its pollcy rate significantly in order to stimulate economic growth and encourage lending.
4) you should advise the central bank to use unconventional monetary policy tools such as quantitative easing. where aggregate reserves are provided beyond the level needed to lower the polcy rate to zero, or credit easing. a policy in which the central bank alters the composition of its balance sheet. the central bank could also inform markets of its commitment to keep interest rates low (forward guidance).

Table 1. shows the expected demand for the dvd at different suggested donation levels, and they can act as a single-price monopolist if they choose to. thereceipts will be used to fund gstcg supplies for their data collection and conservation work. at the end of each sea turtle nesting season, any excess funds are donated by the gstcg to a local non-profit sea turtle research and rehabilitation facility. table 1 suggested anticipated total marginal profit donation per number of dvd revenue revenue dvd request requests $19.00 0 $15.00 2 $9.50 4 $7.75 10 $3.00 15 $0.00 20 a. complete table 1 by computing the total revenue, marginal revenue, and profit columns. b. the president wants the gstcg to provide videos to generate the most possible donations (total revenue). what price, if any, is the president of the gstcg favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. c. the education outreach committee wants the gstcg to provide videos to the highest possible number of people. what price, if any, is the educational outreach committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. d. the treasurer of the gstcg wants the dvd program to be as efficient as possible so that the marginal revenue equals marginal cost. what price, if any, is the treasurer favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. e. the fundraising committee wants the dvd program to generate as much profit in donations as possible. what price, if any, is the fundraising committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer.