What happens to the federal funds rate when the Federal Reserve increases bank excess reserves and the money supply through open market operations?
What happens to the federal funds rate when the Federal Reserve decreases bank excess reserves and the money supply through open market operations?
How might the Federal Reserve implement an expansionary monetary policy? Describe how the FED might use its three major policy tools to accomplish this.
How might the Federal Reserve implement a restrictive or contractionary monetary policy? Describe how the FED might use its three major policy tools to accomplish this.
How do lags affect monetary policy?