Federal Reserve Board - Open Market Operations o Contract...

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Econ 4.3 Friday, March 26, 1999 Announcements: Homeworks 6 and 7 are due on Monday.Answers for the past homeworks are on the web. Online Quzzes for Chapters 10, 11 and 12 will be taken offline on Wednesday, March 31, at 8 am. Lecture notes: The US National Debt is over 5 trillion dollars outstanding Federal Reserve Board Beige Book -- summary of the overal state of the US economy for each of the 12 US Federal Reserve Districts Philadelphia is District 3 Fed's Major Monetary Policy Tools
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Unformatted text preview: Open Market Operations o Contract money supply Sells bonds in Market o Expand Money Supply Buy Bonds in Market Discount Rate Changes Reserve Requirement Changes Earn Money: increase money supply, reduce interest rate, increase investment, increase GDP Keynesian Monetary Policy Linkage to GDP Expansionary Policy Increase Money Supply Excess Supply of Money Fall in Interest Rates Increase Investment (EX-IM) Increase GDP | K J = Y...
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This note was uploaded on 02/21/2008 for the course ECON 4.3 taught by Professor Fox during the Spring '99 term at Pennsylvania State University, University Park.

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