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Federal Reserve policy




Federal Reserve policy;1.The Federal Reserve policy makers use several different tools to influence the money supply and interest rates. Identify and briefly describe these tools. Include in your answer the difference between expansionary and contractionary monetary policies.;2.Define and explain the three lags discussed in monetary policy. For each type identify a problem caused by the lag.;3.If the economy is operating below its potential output, what kind of gap exists? What kinds of fiscal or monetary policies might you use to close this gap? Can you think of any objection to the use of such policies? (Use information from Module 3 as well.)


Paper#28843 | Written in 18-Jul-2015

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