What is the long run effect of monetary policy

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Reference no: EM13183607

1. What happens to the money supply when the Fed purchases bonds on the open market?

2. What happens to the money supply when the Fed sells bonds on the open market?

3. Other than the FOMC operations what are the other two tools that Fed could use in monetary policy?

4. What is the relationship between interest rates and bond prices?

5. What is the relationship between interest rates and investment? Net exports?

6. What is depreciation of a currency? Appreciation of a currency?

7. What interest rate is the Fed trying to control (target) with open market transactions?

8. How are long term interest rates determined?

9. What is the long run effect of monetary policy?

10. Why do interest rates affect output in the short run and not in the long run?

Reference no: EM13183607

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