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Author Question: In the United States, who determines monetary policy? What is the major tool used to determine ... (Read 87 times)

jparksx

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In the United States, who determines monetary policy? What is the major tool used to determine monetary policy?
 
  What will be an ideal response?

Question 2

Because a decrease in real autonomous spending results in a ________ in the price level, the ultimate effect on real GDP is ________ than predicted by the multiplier.
 
  A) fall; larger B) fall, smaller C) rise; smaller D) fall; smaller



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matt95

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Answer to Question 1

The Federal Reserve Bank's Federal Open Market Committee determines monetary policy. The committee is made up of the Board of Governors and 5 reserve bank presidents. Their main tool is buying and selling existing U.S. government securities in open markets.

Answer to Question 2

D





 

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