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Title: Monetary Policy

Essay Details

Subject: Miscellaneous
Author:
Date: January 25, 2016
Level: University
Grade: B
Length: 5 / 1418
No of views: 0
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Essay text:

These actions shall be in business decisions and as participants in the public policy making process. The goal is for the Federal Reserve to know when to use the tools to control the money supply. Tools Used by the Federal Reserve The Federal Reserve has three tools used in monetary policy and those tools are open-market operations, the reserve ratio, and the discount rate...

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The Monetary Policy simulation addresses the spread between the Discount Rate (DR) and the Federal Funds Rate (FFR), Required Reserve Ratio, and Open Market Operations. The Monetary Policy simulation shows how the changes in the Discount Rate, Federal Funds Rate, Required Reserve Ratio, and Open Market Operations affect the Real GDP (Gross Domestic Product), inflation, and unemployment...

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