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Expansionary policy and a contractionary policy

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Reference no: EM131452703

Fill and explain in your own words the table. Indicate how the Federal Reserve would use each of the tree monetary policy tools to pursue an expansionary policy and a contractionary policy.

Monetary Tool 

Expansionary Policy 

Contractionary Policy 

Open Market Operations

 X

 X

Discount Rate

 X

 X

Reserve requirements

 X

 X

Reference no: EM131452703

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