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Macroeconomics

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1.Describe three ways in which the Federal Reserve can change the money supply.
2.If the Federal Reserve is going to adjust all of these tools during an economy that is growing too quickly, what changes would they make?
3.If the Federal Reserve is going to adjust all of these tools during an economic recession, what changes would they make?
4.What changes, if any, to the current condition of these tools would you make at the next meeting of the Federal Reserve? Explain why and the benefits/drawbacks of this strategy.

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The Response Addresses the Queries Posted in 1154 Words, APA References

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The Response Addresses the Queries Posted in 1154 Words, APA References

// Prior to explain the ways through which Federal Reserve can change the money supply, adjust all these tools during the an economy or economic recession, and benefits or drawbacks of this strategy . We have to first of all understand about the Federal Reserve. So that it is quite helpful to you to easily key out the answer of the questions. Thus, firstly we will write about Federal Reserve under the heading of Introduction, for example: //

Introduction: Federal Reserve

In the United States, the Federal Reserve (Fed) is the central banking system. It is also called as Federal Reserve System. Through the enactment of the Federal Reserve Act, Fed was developed in the year 1913. The Federal Reserve System covers the various aspects i.e. issues related to the banking; provides an elastic currency, to afford means of rediscounting cash equivalent, build a more efficacious supervising of banking, etc (Federal Reserve System).

//Above, we discussed about the Federal Reserve, which is the central banking system in the United States. As per your requirements, now we will discuss about three ways by which Federal Reserve can change the supply of money. You can also add more in this topic as per your requirement It is a brief overview of the three ways that aids in your learning under the heading of the ways to change money supply, for example: //

Ways to change money supply:

The various ways in which the Federal Reserve can change the money supply are as follow:

I. The U.S. Government securities can be bought by the Federal Reserves with the help of producing funds or credits on their balance sheets in place of the securities. The banks have new liquid funds in ...

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