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Monetary Policy Tool Chart Name_ Correctly and completely fill out the chart below using your notes and thought. You will need to know the definitions

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Monetary Policy Tool Chart Name_ Correctly and completely fill out the chart below using your notes and thought. You will need to know the definitions of each of the monetary tools as well as what it actually means to increase and decrease each one. This assignment is worth 32 points. Tool Action When is the Fed Effect the Effect on price level, Real most likely to use it? money supply GDP, and unemployment Interest on Increase PL - down Required and Excess Reserves expansion Expansion GDP - UP U - UP Decrease PL- 010 Contraction pansion GDP - P U - down Reserve Increase PL- Own Requirement C x Panding contraction GDP - down U - Decrease PL - GDP - U - Discount Rate Increase PL - GDP - U - Decrease PL - GDP - U - Open Market Increase PL - Operations (Buying) GDP - U - Decrease PL - (Selling) GDP - U - contraction

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