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Monetary And Fiscal Policy
Part 1 of Paper
....that our economy is kept under control. Both policies have their strengths and weaknesses, some situations favoring use of both policies, but most of the time, only one is necessary.
The monetary policy is the act of regulating the money supply by the Federal Reserve Board of Governors, currently headed by Alan Greensp.... Part 2 of Paper
....ves there is not enough money in circulation, then they will buy the securities from member banks. If the Fed believes there is too much money in the economy, they will sell the securities back to the banks. Because it is easier to make gradual changes in the supply of money, open market operations are use more regularly than monetary policy.
When member banks want to raise money, they can borrow from Federal Reserve Banks. Just like other loans, there is an interest rate, or a discount rate, th.... |
| Number of words: 925 - Approximate pages: 4 |
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