How the federal reserve might carry out a tight

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Reference no: EM132198789

Answer the following three questions dealing with monetary policy.

(a) Explain how the Federal Reserve might carry out a "tight" monetary policy.

ANS:

(b) Explain how the Federal Reserve might carry out an "easy" monetary policy.

ANS:

(c) How would each of the policies affect the equilibrium interest rate?

ANS:

Reference no: EM132198789

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