Identify and explain in detail the monetary policy tools

Reference no: EM133322714

The Federal Reserve System's Board of Governors and the Federal Government both maintained contractionary monetary and fiscal policies during the last economic expansion. For the purposes of this essay, assume that recent economic data shows that the economy is still growing at a fast rate.

Question: Identify and explain in detail the three monetary policy tools that the Board of Governors could use to fix this rapid expansion and the two fiscal policy tools that the Federal Government could adopt to address the problem. Be specific in explaining what the tools are, how they will be manipulated by their respective agencies, how they work, and what they are fixing in the economy. Then describe how the actions of the Fed and Government will affect people's spending and saving habits, aggregate demand in the economy, the three economic health indicators, and the amount of money in circulation.

Reference no: EM133322714

Questions Cloud

Essay united states attempted to force assimilation : Essay detailing 2 ways the United States' (and its colonial predecessors') attempted to force assimilation and ways Native people have resisted these efforts.

What is SASSYs cost of equity : SASSY, Inc. stock has a beta of 1.2, the expected return on the market is 13.5% and the current risk-free rate is 5%. What is SASSY's cost of equity

Compute the interest paid on a 30-year mortgage : Compute the interest paid on a 30-year mortgage for $264,856 if the annual interest rate is 4.4% and can some one help me write a business proposal (mock)

How can you measure success of the icc framework : How can you measure success of the ICC framework? Are there organisations who are better at following this guidance than others? Has this helped their success?

Identify and explain in detail the monetary policy tools : Identify and explain in detail the monetary policy tools that the Board of Governors could use to fix this rapid expansion and the two fiscal policy tools

What steps could you take to reduce your operating expenses : What would your personal income statement look like today( no need to show your personal finances, just reflect on them)? Are you operating "at a profit"

What is the article slant on this event-issue : What is the article 'slant' on this event/issue, what information is stated, how will this event/issue affect citizens (and/or you as a global citizen)?

Determine the health or performance : Discuss in depth the instruments used to determine the health or performance of our economy. Be sure to include the equation or index used to measure

Discuss various investment options for harsh and julie : Explain the current situation regarding their investments and Discuss various investment options for Harsh & Julie

User Account

All Pages