How the monetary tool work and how it affects money supply

Assignment Help Business Economics
Reference no: EM13834859

Describe in details how the FED bank uses each of the three monetary policy tools, in order to decrease money supply. In your explanation describe who is responsible for setting the monetary tool and how the monetary tool work and how it affects money supply. The answer will be 500 to 700 words.

Reference no: EM13834859

Questions Cloud

Explain and draw the market and then the typical firm : In a perfectly competitive market, demand for hairbrushes goes down. How does the market and a typical firm respond in the short and long run? Explain and draw the market and then the typical firm (two drawings, one for market, one for firm)
Prevent the exchange rate from falling : If the Fed wished to defend the exchange rate of the $ (i.e. prevent the $ exchange rate from falling) what policy action could it take? Explain.
What is the purchasing power parity theory of exchange rates : What is the "purchasing power parity" theory of exchange rates? If the price of a representative bundle of tradable goods is currently $5000 in the U.S. and 550000 yen in Japan, is the $ undervalued or overvalued when the exchange rate is 90 yen per ..
What is the present worth : You purchase an item today. You pay $600 down, $400 at the end of the first year, $300 at the end of the third year, and $200 at the end of the fifth year. Assuming 18% per year compounded annually, what is the present worth?
How the monetary tool work and how it affects money supply : Describe in details how the FED bank uses each of the three monetary policy tools, in order to decrease money supply. In your explanation describe who is responsible for setting the monetary tool and how the monetary tool work and how it affects mone..
Relationship between governments budget deficit-spending : The relationship between the government's budget deficit and its spending is:
The unemployment rate will fall if potential output growth : The unemployment rate will fall if potential output growth is:
Effect sequence in response to expansionary monetary policy : Identify the correct cause-and-effect sequence in response to an expansionary monetary policy move by the Fed.
Expansionary monetary policy or easy money policy by fed : Expansionary monetary policy, or an "easy money" policy by the Fed..

Reviews

Write a Review

Business Economics Questions & Answers

  Qconsider the following market for a single good x with two

q.consider ?the ?following ?market ?for ?a ?single ?good ?x ?with? two? firms ?that compete ?via? price? bertrand.?you?

  Test the hypothesis that median family income increases

Test the hypothesis that median family income increases as the proportion of the labour force with high school education increases.

  Find equilibrium values of real interest rate-consumption

In Country A the economy can be described in a series of multiple equations, where the desired consumption is Cd = 100 + 0.8Y - 500r - 0.5G, and desired investment is Id = 10 - 500r. Real money demand is Md/P = Y - 2000i. Other variables are πe = 0.0..

  Illustrat what are the advantages of using capital

Illustrat what are the advantages of using capital in the production process. What is meant by the term "division of labor".

  Given the above variable cost data and assuming fixed costs

Output Variable Cost 0 $ 0 1 $ 5 2 $ 9 3 $12 4 $16 5 $22 6 $30 7 $40 8 $52 9 $67 10 $90 Given the above variable cost data and assuming fixed costs equal the value of the last two digits of your MDC student ID, create a file using Excel that lists Ou..

  What is the return on your investment

If you invest $600 in a stock, borrowing $540 of the $600 at 10 percent interest, and the stock price rises by 25 percent, what is the return on your investment?

  Compute the opportunity costs for producing a single twinkie

Compute the opportunity costs for producing a single Twinkie and a single cupcake for Jasper and for Jasmine. Does either have an absolute advantage in the production of Twinkies.

  What is the gdp of george and john island

helping him to dig bait for fishing, and he also purchased five of John's mature banana trees for 30 clamshells each. What is the GDP of George and John's island in terms of clamshells

  What is the required reserve ratio

if the required reserve ratio is 10 percent, what is the monentary multiplier? if the monetary multiplier is 4, what is the required reserve ratio?

  Illustrate implications of computing a multiple regression

Illustrate what are implications of computing a multiple regression when repressors are orthogonal. Illustrate what is significance of idempotent matrix.

  Judged in terms of the mechanisms used to allocate resources

Judged in terms of the mechanisms used to allocate resources, the former USSR was

  Under the responsibility scheme

Under the responsibility scheme proposed by the Taiwan government, households will be charged for solid waste disposal. Is this charge justifiable from an economics point of view?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd