Unit 3: Macroeconomic Policy

Lesson 16a: Monetary Policy

Tools of Monetary Policy

Open Market Operations (OMO) real GDP UE and EG Buy securities ER MS Rates I AD price level IN Sell securities ER MS Rates I AD Required Reserve Ratio (RR) RR ER MS Interest Rates I AD RR ER MS Interest Rates I AD Discount Rate (DR) DR ER MS Interest Rates I AD DR ER MS Interest Rates I AD

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