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?
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?
Chapter19: Money Creation
Section: Chapter Questions
Problem 4SQP
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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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