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The Fed has three main monetary policy tools they can use to manage the money supply. What impact will each of the following policy tools
The Fed has three main monetary policy tools they can use to manage the money supply. What impact will each of the following policy tools have on the money supply? Do these actions qualify as contractionary or expansionary monetary policy? Open market operations - the Fed buys Treasury securities Discount policy - the Fed raises interest rates Reserve requirements - the Fed lowers the required reserve ratio
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