Economics Today: Macro View (Looseleaf)
Economics Today: Macro View (Looseleaf)
18th Edition
ISBN: 9780133916492
Author: Miller
Publisher: PEARSON
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Chapter 16, Problem 2CTQ
To determine

Why do you think traders regard Martin’s metaphor as clearer than the recent Fed chair’s?

Introduction:

Fed owns the right to change the monetary policy which reflects the amount of money in the economy and the interest rates along with the price of bonds. Fed tries to sell and purchase these securities in the open market operations which are owned and controlled by the fed. Fed’s decision influence all the people of a country and people wait for these policies to be in their favor as it affects all the people in the economy.

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