Monetary Policy: The Three Tools of the Federal Reserve
Not what you're looking for?
Assuming the Federal Reserve chooses to shrink the money supply, explain how each of the three tools would be used.
Purchase this Solution
Solution Summary
This solution identifies each of the three main monetary policy tools of the Federal Reserve and explains how each one would be used to shrink the money supply.
Solution Preview
The Federal Reserve uses three main monetary policy tools:
1. Open market transactions
2. Change in the required reserve rate
3. Change the discount rate
To shrink the money supply, the Fed ...
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.