ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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three tools encorage/discorage
1. change the reserve requirements
2. change the discount rate
3. buy or sell govertment securities through open market operations.
- When contractionary
monetary policy is called for how would the FED use the three tools? BE SPECIFIC, how would each tool be used? What phase of the business cycle would the economy be in when the brakes are necessary?
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- 4. The _____ oversee(s) the main tool of monetary policy. a. Congressional Budget Office b. 12 regional Federal Reserve banks c. Council of Economic Advisers d. Federal Open Market Committeearrow_forwardCheck all that applyarrow_forward1a.Name 2 or more tools that the Fed uses in conducting monetary policy. b.Describe how / why the Fed might use one of these tools.arrow_forward
- Please write down in a couple of sentences what I need to know about each, including any rules/formulas. I have an exam on these soon and I want to understand these concepts throughly.arrow_forward1. What is Central Bank Independence(CBI)? What is the difference between political and operational independence? 2. Why do you expect the relationship between CBI and inflation to differ between the federal reserve and the central banks for the CFA?arrow_forwardIf the Fed sells $2 million of bonds to the First NationalBank, what happens to reserves and the monetary base?Use T-accounts to explain your answerarrow_forward
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