0
The three tools the Federal Reserve uses to enact monetary policy are?
Wiki User
∙ 9y ago
the three tools the Federal Reserve uses to enact monetary policy are setting the interest rate charged to commercial banks on loans from the Federal Reserve. Setting the reserve rate. The buying and selling of Treasury bonds and other government-backed securities
Wiki User
∙ 9y ago
Anonymous
N
Add your answer:
Earn +20 pts
How do you distinguish fiscal policy from monetary policy?
Opinions about if fiscal policy or monetary policy is better will vary depending on who you ask. One country may benefit greatly with fiscal policy, while another may not. It all has to do with their economic system.
Why would the federal reserve enact a tight money policy?
monetary policy is the use of money supply and interest rate to control the supply of money in an economy. Usually, the main use of monetary policy is to control inflation. e.g. when interest rate is high, people don't spend as much (and some may even save more), reducing the pressure on demand/supply, reducing the price level i.e. decreased inflation. It can work on reverse if the interest rate is put up (if inflation is dangerously low - close to point of deflation.) Alternatively, government can sell/buy assets so as to withdraw/inject more money into an economy.
When government policies are enacted what does that mean?
When a government enacts a policy, it means that they are making it a law. Before the government can enact a policy, it is first presented as a bill and must be voted on by members of government.
Why the government might enact a price ceiling in order to accomplish what?
The government might enact a price ceiling in order to protect the poor.
The government my enact a price floor in order to accomplish what?
Protect producers
What did the Federal Reserve refuse to do in order to keep a run on the banks from causing a failure of the US banking system?
The Fed refused to enact a tight monetary policy by tightening the monetary policy to stop inflation.
Should the US Federal Government enact an open border policy with Canada and Mexico?
Right now it is very unlikely to have such policy implemented. See related questions for some details.
How do you distinguish fiscal policy from monetary policy?
Opinions about if fiscal policy or monetary policy is better will vary depending on who you ask. One country may benefit greatly with fiscal policy, while another may not. It all has to do with their economic system.
Why would the federal reserve enact a tight money policy?
monetary policy is the use of money supply and interest rate to control the supply of money in an economy. Usually, the main use of monetary policy is to control inflation. e.g. when interest rate is high, people don't spend as much (and some may even save more), reducing the pressure on demand/supply, reducing the price level i.e. decreased inflation. It can work on reverse if the interest rate is put up (if inflation is dangerously low - close to point of deflation.) Alternatively, government can sell/buy assets so as to withdraw/inject more money into an economy.
How does growth in the number of interest groups and PAC's make it difficult for the federal government to enact public policy?
As more interest groups and PACs are made it becomes extremely difficult for the government to please everyone
What does the federal government of Australia control?
The federal government exists to enact and enforce the laws passed by the commonwealth parliament.
What gives the federal government the power to enact statutory criminal laws?
The United States constitution gives Congress the power to enact criminal laws.
What prompted China's government to enact this policy?
The One Child Policy was enacted in the late 1970s to limit the population growth.
The leaders of a small country decide that they need to enact a contractionary fiscal policy Which action is consistent with this fiscal policy?
A reduction in government spending is consistent with a contractionary fiscal policy.
What was the most important reason for the confederation create a federal sovereignty?
To allow the government to enact and enforce laws
What is the rational activist model?
Rational-Activist Model: Public exerts pressure electorally. Representatives must enact policy demands of the public or the public will elect some else who will enact those policies.
Does the federal statue apply to all states?
Yes, Federal laws take precedence. However states can enact stricter laws without violating the federal statutes. They cannot void any portion of a federal law.
