Macro: Unit 4.3 -- Types of Monetary Policy

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In this video, I will:
Define monetary policy
Identify important characteristics of the different types of monetary policies
Discuss the tools that the Federal Reserve can use to correct economic conditions
Investigate expansionary and contractionary monetary policy
Define the discount rate and graph how an increase and decrease in the discount rate
will effect the money supply, nominal interest rates, investment spending, and real GDP
output
Define the reserve ratio and graph how an increase and decrease in the reserve ratio will
effect the money supply, nominal interest rates, investment spending, and real GDP output
Define open market operations and graph how the buying and selling of bonds will effect
the money supply, nominal interest rates, investment spending, and real GDP output
Define the federal funds rate and graph how an increase and decrease in the federal funds
rate will effect the money supply, nominal interest rates, investment spending, and
real GDP output


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