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Conducting expansionary monetary policy

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Reference no: EM131221334

Assignment details:

Explain the actions of the Fed in regard to the three tools.

  • When the required reserve ratio is increased or decreased
  • When the discount rate is increased or decreased
  • Buying or selling government securities when conducting expansionary monetary policy

Explain how these actions would affect the money supply, interest rates, spending, aggregate demand, GDP, and employment.

Reference no: EM131221334

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