if policy tools like required reserves, discount rate, and open market operations are used to increase the feds interest rates by 25 basis points what does this mean for the policy instruments (Reserve aggregates, and short term interest rates)?

B.

How would these policy instruments determine an easy or tight monetary policy? Which is it (easy or tight)?

C.

How would intermediate targets (Monetary aggregates, and Long term interest rates) be affected by the policy tools and policy instruments?

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A If policy tools like required reserves discount rate and open market operations are used to increa... View the full answer