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Identify the four major tools of monetary policy. b) Describe how changes in the Fed’s major policy tools leads to [1] expansionary and [2] restrictive or contractionay monetary policies.

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Retselisitsoe Pokothoane
Retselisitsoe PokothoaneLv10
28 Sep 2019

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Related questions

1. a) Do protectionist policies benefit producers, consumers, workers, or the government? Explain. b) Explain how the "Buy American" theme hurts Americans.






2. a) Identify the four major tools of monetary policy. b) How can monetary policy address the problem of inflation?

An expansionary monetary policy may be less effective than a restrictive monetary policy because:
 
a. the Federal Reserve Banks are always willing to make loans to commercial banks that are short of reserves.
b. fiscal policy always works at cross purposes with an expansionary monetary policy.
c. changes in exchange rates complicate an expansionary monetary policy more than they do a restrictive monetary policy.
d. commercial banks may not be able to find loan customers.
 

Define Monetary Policy. Describe the impact that Monetary Policy has on our economy. Name the three major tools of Monetary Policy and describe how each one would be used to lower the money supply.

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