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16-3 vocabulary jw

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