Expansionary and contractionary monetary policies

Reference no: EM1373429

Q1. Explain the differences between commodity money and fiat money, making sure to explain what makes fiat money work.

Q2. Describe the money multiplier. Identify the change to the money supply in the following situation: The required reserve ratio is 12.5 percent and the Fed increases the monetary base by $100.

Q3. Explain the monetary policy tools the Fed can use to affect the monetary base.

Q4. Compare and contrast expansionary and contractionary monetary policies.

Q5. Identify and explain the means by which the Fed can affect the money multiplier. How do changes in policy carry through to the economy?

Reference no: EM1373429

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