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They would raise interest rates, so it would be harder for people to borrow money, consume, and spend. Raising interest rates will decrease the amount of money in circulation, so help prevent inflation.

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10y ago
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16y ago

Lower federal funds rate and discount rate, buy securities in open market operations and lower reserve requirements.

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Q: How would the Federal Reserve implement an expansionary monetary policy?
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Related questions

What does not describe the buying of the US treasury bonds by the federal reserve?

it is part of expansionary monetary policy


And what does not describe the buying of US treasury bonds by the federal reserve?

it is part of expansionary monetary policy


Which of the following does not describe the selling of U.S. Treasury bonds by the Federal Reserve?

it is part of expansionary monetary policy


Which type of monetary policies would the Federal Reserve most likely use when the economy is struggling?

Expansionary policies


What does not describe the selling of U.S. Treasury bonds by the Federal Reserve?

it is part of expansionary monetary policy


Which type of policy is controlled by the Board of Governors of the Federal Reserve?

Well, if by "the federal reserve", you mean the federal reserve bank, then there are two types of policies. These are expansionary and contractionary monetary policies. In times of recession, The FED uses expansionary policies such as increasing the money supply by buying bonds, lowering the discount rate, and lowering reserve requirements.In times of over expansion, The FED uses contractionary policies such as decreasing the money supply by selling bonds, raising the discount rate, and raising reserve requirements.


How does expansionary monetary policy affect net exports?

Expansionary monetary policy can do one or more of three things. It can purchase securities on the open market, lower the reserve requirements or lower the federal discount rate. This can affect net exports because it makes products made in America available cheaper in other countries.


Monetary policy in the US is carried out primarily by what agencies?

The Federal Reserve Monetary_policy_in_the_US_is_carried_out_primarily_by_which_of_the_following_agencies


Who regulates the nation's monetary policy?

The Federal Reserve


What agency handles monetary policy?

The Federal Reserve


The part of the federal government responsible for monetary policy is?

the Federal Reserve System


Does china have a federal reserve?

There isn't such an agency named federal reserve in China but they do have a central bank making monetary policies.