Asked by Bianca LaForteza on Apr 24, 2024
Verified
Name three actions the Fed can take to increase the money supply.
Money Supply
The total amount of money available in an economy at a specific time, including cash and bank deposits.
- Examine the effect of tools deployed in monetary policy on both the banking industry and the macroeconomic environment.
Verified Answer
TP
Tiana Perez5 days ago
Final Answer :
Open-market purchases (buy government bonds), reduce the required reserve ratio, reduce the discount rate, reduce interest on reserves
Learning Objectives
- Examine the effect of tools deployed in monetary policy on both the banking industry and the macroeconomic environment.