Elucidate what are the arguments in favor and in opposition

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Reference no: EM1363151

a. Elucidate what are the arguments in favor and in opposition to an independent central bank?

b. Regarding monetary policy from the Federal Reserve, what is the difference between contractionary and expansionary monetary policy? What happens to the money supply, interest rates, and the economy in general if the Federal Reserve is a net seller of government bonds? Describe what happens to the money supply, interest rates, and the economy in general if the Federal Reserve is a net buyer of government bonds. How do these policies impact the firm or industry you work in?

Reference no: EM1363151

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