Open Market Operations (buying and selling of bonds) Reserve Requirement Ratio Expansionary Monetary Policy Contractionary Monetary Policy Discount Rate Federal Funds Rate Interest Rates Inflation Employment Economic Growth

Discuss what monetary policy is. Discuss different instruments of monetary policy.

find objective of policy & Monetary policy

What is an inappropriate use of monetary and fiscal policy?

A monetary policy that successfully offsets a recession also has the effect of lower output than if no policy action is taken O results in a larger government deficit causes the price level to rise lowers investment spending

Evaluate the effectiveness of using monetary policy to reduce the rate of inflation.

Monetary Policy is one the important drivers in growth & development of an economy. Illustrate at least four instruments/tools which are used universally in implementation of monetary policy.

Describe three ways in which the interest rate changes implemented in an expansionary monetary plan by the Fed would work their way through the economy in order to improve economic conditions. How would changed interest rates affect business, households, governments, and those involved in imports/exports?

Monetary policy as one of the macroeconomic policies is generally implemented in line with the cycle of economic activity (business cycle). Based on this, answer the following questions: a) Explain what monetary policy is appropriate to apply when there is a decline in GDP, economic growth slows and there is a decline in the prices of goods? b) Explain what monetary policy is appropriate to apply when there is an increase in the amount of real output or economic growth and an increase in the price of goods? Explain!

In 2021 President Biden proposed raising long term capital gains taxes for wealthy individuals. Raising taxes by the US government is an tool of   a Monetary policy   b Fiscal policy   c Accommodation policy   d Interest rate policy