Question: 7. How will the changes on decrease reserve requirements, the discount rates lowered for commercial banks, and buy bonds in open market operations help the
7. How will the changes on decrease reserve requirements, the discount rates lowered for commercial banks, and buy bonds in open market operations help the economy? In other words, how will the changes you want to make translate into real people making different decisions that will ultimately help the overall economy? You probably want to mention how the market for money is affected, how the interest rate might change, how people respond to changes in the interest rate, and how this behavioral change in many people can change the overall economy
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