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Monetary Policy Questions

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1.What is monetary policy? What are the four actions involved in implementing monetary policy? What actions expand the economy? What actions contract the economy? What actions expand the economy? Note one business activity understanding this concept would be of value to.

2. How do banks create money?

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Solution Summary

The expert determines what is monetary policy. The four actions involved in implementing monetary policy are determined.

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1.What is monetary policy?

Monetary policy is the action of a central bank (or, if you're American, the Federal Reserve) does to control the supply of money; with intent to alter inflation and demand to manage economic growth. This isn't an exact science by any means, and the track records of monetary policies are often held to criticism.

What are the four actions involved in implementing monetary policy?

Note: this may vary based on your textbook (there really isn't an official "four ...

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