1. Describe the basic procedure of the Open Market Operations tool when it is used to engage in U.S. expansionary monetary policy.
2. Then, describe the basic procedure of the Open Market Operations tool when it is used to engage in contractionary monetary policy.
3. As a business manager monitoring the actions of the Federal Reserve, you observe that the Fed has been implementing contractionary monetary policy in the use of all of its basic tools, and this policy is likely to continue for the next year or so.Based on this information alone, explain if this would be either a good or a bad time for your firm to engage in additional borrowing to help expand your business operations.
4. How is India engaged in expansionary monetary policy? What mechanisms did the nation use? In what year? What was the goal of this policy? What was the impact of this policy?
5. How is China recently engaged in contractionary monetary policy? What mechanisms did the nation use? In what year? What was the goal of this policy? What was the impact of this policy?