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Title: Monetary Policy And Its Affect On Macroeconomic Factors

Essay Details

Subject: Business
Author: Tom G
Date: July 20, 2012
Level: University
Grade: B
Length: 5 / 1375
No of views: 0
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Essay text:

The goal of a monetary policy is to achieve and maintain price level stability, full employment and economic growth. (McConnell & Brue, 2004, p. 268, ¶ 1) A basic discussion on how commercial banks and the banking system create money is needed to understand how the Fed utilizes tools at its disposal to implement a monetary policy...

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268, ¶ 1) A basic discussion on how commercial banks and the banking system create money is needed to understand how the Fed utilizes tools at its disposal to implement a monetary policy. The United States has a fractional reserve banking system in which only a fraction of the money supply is held in reserve as currency...

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