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the following question based on econmics in 2-3 sentences: describe monetary policy. Video: national economic goals so what is that 0:32 supposed to do well
the following question based on econmics in 2-3 sentences: describe monetary policy. Video: national economic goals so what is that 0:32 supposed to do well let's break it down 0:35 it says that monetary policy is what the 0:37 Fed does to quote influence the 0:39 availability and cost of money and 0:41 credit okay they're influencing how easy 0:43 it is to borrow and how much it cost 0:45 right the Fed does this to quote help 0:48 promote national economic goals Oh like 0:51 price stability and full employment you 0:53 got it 0:54 a second way of thinking about monetary 0:56 policy is what the Fed does to affect 0:58 interest rates and interest rates affect 1:01 the whole economy so how does the Fed 1:03 affect interest rates by influencing the 1:06 amount of money banks have to lend 1:07 here's how it works 1:09 suppose the economy is in recession 1:11 there's too little business activity and 1:13 unemployment is rising right a typical 1:16 recession exactly in the situation the 1:18 Fed may adjust its monetary policy by 1:20 increasing the money supply and wouldn't 1:23 that tend to make credit more available
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