Briefly describe how the Fed would use its three main policy tools to stimulate the economy .
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Question:
Briefly describe how the Fed would use its three main policy tools to stimulate the economy.
(1) The Fed should increase or decrease the benchmark rates such as Fed funds rate? Briefly explainWhy.
(2) The Fed should buy or sell Treasury securities?Briefly explainWhy.
(3) The Fed should increase or decrease the bank reserve requirement ratio?Briefly explainWhy.
Expert Answer:
1 The Fed can use its benchmark interest rates such as the federal funds rate to stimulate the econo... View the full answer
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