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Economics

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U.S. monetary policy is set by the Federal Open Market Committee (FOMC). The purpose of the policy is to encourage maximum employment, stable prices, and reasonable long-term interest rates.

Please review the module resources and discuss the tools the Federal Reserve uses to control monetary policies. Include the objective each tool is used to deliver. Expand on how the Federal Reserve System uses the interest rate to affect the money supply.

Please do not do anything about plagiarism and the answers should involve every questions. Thanks.

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Explanation & Answer

Attached.

Surname 1

Student’s Name
Professor’s Name
Course Title
Due Date
Monetary Policies Tools
Tools the Federal Reserve uses to control monetary policies
There are some tools that the government uses to control fiscal policies. The most common tool
is the federal fund rate. The federal fund rate refers to the rate of interest that is charged on the
banks for lending the Federal Reserve fund fo...


Anonymous
Awesome! Perfect study aid.

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