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16-3 vocabulary jw

QuestionAnswer
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
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