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16-3 vocabulary jw
| Question | Answer |
|---|---|
| Includes the Fed's actions tht change the money supply in order to influence the economy. | Monetary Policy |
| ...are the sales and purchse of federal government sercurities. | Open Market Operations |
| ...is the interest rate that banks charge one another to borrow money | Federal Funds Rate (FFR) |
| ...is the interest rate that the Fed changes when it lends money to other banks. | Discount rate |
| ...is the interest rate that banks charge their best customers. | Prime Rate |
| A plan to increase the money supply | Expansionary monetary policy |
| A plan to reduce the money supply. | Contractionary monetary supply |
| ...is another name for expansionary monetary policy. | Easy-money policy |
| ...is another name for contractionary monetary policy. | tight-money policy |
| ...is a theory that holds that rapid changes in the money supply cause economic instability. | Monetarism |
Created by:
joannw15
on 2011-06-26