1) Explain: Who has control of the money supply in the US Economy? What happens to the interest rate if the money supply increases or decreases and the demand for money remains unchanged?

2) What are the "Tools" of the Federal Reserve? How are they used to increase the money Supply? How are they used to decrease the money supply? When would you use these policies?

Answer rating: 100% (QA)

Monetary Control and Federal Reserve Tools 1 Control of Money Supply in the US The Federal Reserve Fed has indirect control over the money supply in t... View the full answer