46. The Federal Reserve’s tool to direct the economy is through monetary policy.
a. True.
b. False.
This is true. Federal Reserve is the Central bank of United States of America who is entrusted with the task of directing the economy through monetary policy. Monetary policy, as the word suggests, relates to the directing the money supply in the economy. Some instruments of Monetary Policy are bank rate, open market operations, etc.
46. The Federal Reserve’s tool to direct the economy is through monetary policy. a. True. b....
Select a Monetary Policy Tool and explain how the actions of the tool contract or expand the economy. Analyze how the Monetary Policy Tool meets the Role of the Federal Reserve. How does the chosen Monetary Policy Tool impact you? The one I choose for this was "Open Market Operstions" Help pleae :)
8. Which of the Federal Reserve’s measures of the monetary aggregates—M1 or M2—is composed of the most liquid assets? Which is the larger measure?
18. Suppose the Federal pose the Federal Reserve opted to implement monetary policy by decreasing the interest id on excess reserves. This would be an example of a. Expansionary monetary policy b. Contractionary monetary policy c. Discretionary monetary policy d. Exemplary monetary policy 19, A policy decision by the Federal Reserve to sell short-run U.S. securities out of the New York branch would be an example of a. Expansionary monetary policy through decreasing the federal funds rate b. Contractionary monetary...
According to our discussion, the most widely used monetary policy tool used by the Federal Reserve is ___________. A- altering the discount rate B- altering the reserve requirements C- altering the money supply D- altering marginal tax rates
Name one monetary policy, and specify the policy tool to use, that the Fed could make to help boost the economy.
Which tool of monetary policy does the Federal Reserve use most often? open-market operations term auctions changes in reserve requirements changes in the discount rate
If the Federal Reserve pursues an accommodative monetary policy, interest rates will ________ and the economy will ________.
a. What does the Taylor Rule imply that monetary policymakers should due to the Federal Funds Rate under the following scenarios? Please explain your answer using the information in the Taylor Rule. (Hint: you may want to start with the equation for the Taylor Rule.) The Taylor Rule: 1. Unemployment rises due to a recession. 2. An oil price shock causes the inflation rate to rise by 1% and output to fall by 1%. 3. The Fed decreases its target...
Principles of Macroeconomics Assignment #7: Monetary Policy Assume the following data for the economy in the United States: . Inflation is at 4.0% and has been rising for the last 3 years from a low of 1.2% Unemployment is at 3.9% and has been falling for the last 6 years from a high of 7.8% The GDP is at $15.36 trillion and has been growing at about 3% for the last 7 years. The NRU is 4.0% Target Inflation is...
1. Using the monetary policy tool the Fed employs most often, the Fed closes an inflationary gap. Describe the steps the economy goes through to move to the new equilibrium output and price level. Use graphs with your answer and be sure to label everything completely. 2.Explain and show on a graph the short-run and long-run equilibrium changes in the AD/AS model from expansionary monetary policy. How does this support an anti-monetary policy stance? 3. What is the equation of...