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What problem does tight money policy combat?
tight money policy combats inflation (when to much money is out in circulation the Fed limits the amount of money that is in Circulation known as the tight money policy.)
What type of policy does the fed use to counteract a contraction?
The fed uses an expansionary monetary policy when dealing with a contraction. On the other hand, when dealing with a expansion that is resulting in higher interest rates, the fed uses a tight money policy.
If the fed wants to increase the money supply it should?
If the Fed wants to increase the money supply, they should buy the government bonds. The actions that can be used by the Fed to increase the money supplied is called the monetary policy.
What happens to money supply when the fed raises the reserve requirement?
tibor and owen
What would fed do to interest rates if it wanted to fight inflation?
Use a monetary policy to decrease the money supply.
What problem does tight money policy combat?
tight money policy combats inflation (when to much money is out in circulation the Fed limits the amount of money that is in Circulation known as the tight money policy.)
What type of policy does the fed to counteract a contraction?
The fed uses an expansionary monetary policy when dealing with a contraction. On the other hand, when dealing with a expansion that is resulting in higher interest rates, the fed uses a tight money policy.
What type of policy does the fed use to counteract a contraction?
The fed uses an expansionary monetary policy when dealing with a contraction. On the other hand, when dealing with a expansion that is resulting in higher interest rates, the fed uses a tight money policy.
If the fed wants to increase the money supply it should?
If the Fed wants to increase the money supply, they should buy the government bonds. The actions that can be used by the Fed to increase the money supplied is called the monetary policy.
What happens to money supply when the fed raises the reserve requirement?
tibor and owen
What would fed do to interest rates if it wanted to fight inflation?
Use a monetary policy to decrease the money supply.
What is the policy used most by the Fed to change the money supply?
interest rates
What are the monetary tools policy?
The Fed, Federal Reserve System, has three tools to use for its monetary policy. 1. Open Operations - buying or selling securities from the privite sector to control money supply. 2. Discount Loans - Setting discount rate that privite sector banks would need to pay the Fed to borrow money from them. 3. Reserve requirements - sets amount of money banks must have in their vaults in case customers come take money out. The Fed's current monetary policy is price stability and implicitly controling inflation.
Why did Fed communicated changes in its monetary policy by announcing changes in its policy targets?
In recent years the Fed has communicated changes in its monetary policy by announcing changes in its policy targets for the:
Describe the effect that The Fed raises the discount rate from 5 percent to 10 percentwill have on the money supply?
If the Fed raises the discount rate from five percent to ten percent, there would be less money supply. This is because it is a contractionary monetary policy.
If the demand for money increases and the fed wants interest rates to remain unchanged what would be an appropriate policy?
Buy bonds in the open market
What was the fed trying to do with it monetary policy during the past two years?
It is difficult to say what the Fed was trying to do during the last two years with monetary policy based on your question. We do not know if the Fed is a person or group, and we do not know which monetary policy.
