Monetary policy consists of changing the money supply

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There are two main tool of fiscal policy. What are they, and how can they be used in both expansionary, or contractionary ways?

Monetary policy consists of changing the money supply, and so the intrest rate, by the Federal Reserve. There are three major tool of monetary policy. What are these tools, and when would the Federal Reserve ( the Fed) use each of them ?

For expansion, would fiscal or monetary policy be more effective? For contraction?

Reference no: EM131166788

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