What 3 tools can the FED use to manipulate overall economic activity?

Posted by printer - 07/12/09 at 11:12:27 am
3. How is Money Supply/Liquidity in the banking system influnced by changes in Monetary Policy? What 3 tools can the FED use to manipulate overall economic activity?
4.What are characteristics of MONOPOLY as a market structure? What is the meaning of WELFARE LOSS associated with Monopoly?
5.What is considered an optimal rate of unemployment – “natural rate”? What are four different types of unemployment found in the economy?

By: Mira

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What tools can the Fed use to deal with a new round of inflation?

Posted by printer - 14/11/09 at 03:11:23 pm

Soobie asked:


Let’s say that it’s 2006 and the economy is growing. It is growing to the point that there is concern that inflation may be accelerating. What are the tools the Fed uses to combat a new round of inflation? Also, how exactly would the economy be affected?

I’m really curious about this, and any ideas are greatly appreciated.

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