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Author Question: In the United States, who determines monetary policy? What is the major tool used to determine ... (Read 90 times)

jparksx

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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


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matt95

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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

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Reply #2 on: Jun 30, 2018
Thank you


matt95

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Reply #3 on: Jun 30, 2018
No problemo


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