Hey Everyone! I'm Mr. Willis, and You Will Love Economics!
In this video, I will:
- Define monetary policy
- Identify important characteristics of the different types of monetary policies
- Discuss the tools that the Federal Reserve can use to correct economic conditions
- Investigate expansionary and contractionary monetary policy
- Define the discount rate and graph how an increase and decrease in the discount rate
will effect the money supply, nominal interest rates, investment spending, and real GDP
output
- Define the reserve ratio and graph how an increase and decrease in the reserve ratio will
effect the money supply, nominal interest rates, investment spending, and real GDP output
- Define open market operations and graph how the buying and selling of bonds will effect
the money supply, nominal interest rates, investment spending, and real GDP output
- Define the federal funds rate and graph how an increase and decrease in the federal funds
rate will effect the money supply, nominal interest rates, investment spending, and
real GDP output
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