Author Question: In the United States, who determines monetary policy? What is the major tool used to determine ... (Read 86 times)

jparksx · **on:** Jun 30, 2018

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

matt95 · **Reply #1 on:** Jun 30, 2018

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

jparksx · **Reply #2 on:** Jun 30, 2018

Thank you

matt95 · **Reply #3 on:** Jun 30, 2018

No problemo

Author Question: In the United States, who determines monetary policy? What is the major tool used to determine ... (Read 86 times)

jparksx

In the United States, who determines monetary policy? What is the major tool used to determine ...

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matt95

In the United States, who determines monetary policy? What is the major tool used to determine ...

jparksx

In the United States, who determines monetary policy? What is the major tool used to determine ...

matt95

In the United States, who determines monetary policy? What is the major tool used to determine ...