Question
Please, I need help with my research project for Macroeconomics. Here are the requirements: First, find an article that discusses monetary policy. The article does
Please, I need help with my research project for Macroeconomics. Here are the requirements:
First, find an article that discusses monetary policy. The article does not have to be current, and does not have to include specific data or graphic illustrations. Suggested online article sources include www.Economist.com, www.cnbc.com, www.business.msnbc.com, www.cnnmoney.com, www.nytimes.com, and www.businessweek.com - just to name several of many potential resources (both online and hardcopy). Use this article to address the following instructions and questions: 2. Use an arrow to indicate in the article where the Federal Reserve System (the Fed) is mentioned. 3. Underline the passage (not more than a sentence) which indicates what monetary instrument(s) or tool(s) is being used by the Federal Reserve. 4. On a separate sheet of paper, write which instrument or tool of monetary policy is being used (for example, "reserve requirements" or the "discount rate" or "open market operations"). If you select "open market operations", then specify whether "bond purchases" or "bond sales" constitute the open market activity. Note: The Federal Funds Rate is not a "tool" of monetary policy. It is the short-run interest rate that is "targeted" by the Fed to result from the application of specifically "open market operations"! 5. Circle the passage (not more than a sentence) which indicates in what direction the monetary instrument(s) or tool(s) is being used by the Federal Reserve to change the money supply. 6. On your sheet of paper, write which of the following best summarizes the effect on the quantity of money supplied of the monetary policy identified/described in numbers 3, 4 & 5 above: Will or did it lower the quantity of money below what it would have been without the change in policy (write "lower money supply"), or Will or did it raise the quantity of money above where it otherwise would have been (write "raise the money supply")?
Thank you!!
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