Econ Macro (book Only)
6th Edition
ISBN: 9781337408745
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 14, Problem 9P
To determine
Tools used by Federal Reserve to pursue
Introduction:
FED also known as the Federal Reserve System is the central bank of the United States of the America.
Monetary policy is the tool by which central bank of the country controls the monetary base in the country or economy. Central bank has many tools to pursue the monetary policy.
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6.Fed is split over time of rate rise
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19 The following is TRUE about monetary policy EXCEPT,
It relates to revenue and expenditure by government budget.
It manages the creation and flow of money and credit in the economy.
It aims to control the money supply and regulate the monetary sector.
It uses interest rate and money supply as monetary tools.
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A. by changing reserve requirements
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D. by changing money supply
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
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