2 years ago

Explain monetary policy. Provide a real or hypothetical example of the Federal Reserve implementing monetary policy.

1 answer:

7 0

Answer:

The Fed can use four tools to achieve its monetary policy goals: the discount rate, reserve requirements, open market operations, and interest on reserves. ... Higher rates discourage lending and spending by consumers and businesses. Discount rate changes are made by Reserve Banks and the Board of Governors.

Decreasing the discount rate.

Purchasing government securities.

Reducing the reserve ratio.

Explanation: enjoy

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