Explain what is meant by monetary policy. List and explain the 3 tools the Federal Reserve...
1. List and explain the 3 tools of Federal Reserve Monetary Policy. 2. Explain how the Federal Reserve would use expansionary monetary policy to close a recessionary gap. Explain how the money supply, interest rate, investment spending, consumer spending, aggregate demand, real GDP, unemployment, and price level is affected. Illustrate this graphically below
Can you explain how the Federal Reserve utilizes each of the four monetary policy tools to implement an expansionary monetary policy and contractionary monetary policy?
question 1list and explain the policy tools the Federal Reserve can use to reduce inflationquestion 2list and explain the fiscal policy tools the government can use to reduce inflation
11. There are several tools that the Federal Reserve System uses to implement monetary policy. a. Describe these tools b. Explain how the Fred would use each tool in order to increase the money supply.
1. What is the Federal Reserve System, and what is its purpose? 2. List and explain the primary tools does the Fed have for conducting monetary policy.
The government of Broncoland uses monetary policy tools similar to the Federal Reserve System of the United States and defines its monetary aggregates the same way as the Federal Reserve System of the United States. The required reserve ratio in Broncoland is 10%. The following information also applies to the government of Broncoland: Bank deposits at the central bank = $200 million Currency held by the public = $150 million Currency in bank vaults = $100 million Checkable bank deposits...
list and explain the goals and tools of the monetary policy?
2. Explain the following questions regarding monetary policy. 2.1.Discuss the three monetary policy tools of the Federal Reserve. 2.2.Explain how each monetary policy tool can be used to change the money supply and equilibrium interest rate in the U.S. 2.3.Using the IS-LM graph, what will happen to the equilibrium interest rate (i*) and equilibrium GDP (Y*) when the monetary policy action described in Question 2.2 is conducted. 2.4.Using the IS-LM model, explain in which situations such a monetary policy action...
Question 1 -- / 10 1) The Federal Reserve Board has a variety of monetary tools available to it to influence the economy. Identify and define the most commonly used mechanism of monetary policy and one additional tool of your choice. Discuss the effect of each of these tools on the relevant parties. Question 2 ( -- / 10 ) 2) Define balance of payments. What is the difference between a positive balance of payments and a negative balance of...
Question 16 The Federal Reserve uses a variety of monetary policy tools to achieve which of the following goal(s)? a bull market, new companies, and fair trade low unemployment, price stability and sustainable economic growth full employment, zero inflation and and a trade surplus high stock prices, rapid growth, and a trade surplus