Describe tools that the US Treasury and the Federal Reserve use to undertake restrictive monetary policy today (versus before the mortgage-debt crises).

Q: Define monetary policy and its various instruments.

A: Economic policy refers to the strategies and measures that a government or central bank implements…

Q: The relationship between fiscal and monetary policies, referring to the nature of the financial…

A: The government uses fiscal policies as tools to ensure a healthy market by preventing recession and…

Q: Discuss how the approach to monetary policy by the ECB has evolved overtime. Describe the key policy…

A: Central banks play an essential function in the worldwide financial system by controlling monetary…

Q: Why is monetary policy chosen over fiscal policy as the preferred tool for stabilization policy

A: Monetary and fiscal policy are the two most well-known techniques for affecting a country's economic…

Q: Discuss the main unconventional monetary policy tools.  Give examples of central bank policies from…

A: The activities done by a central bank or other regulatory body to control the money supply and…

Q: Describe how a central bank conducts a contractionary monetary policy to slow down the economy

A: Contractionary monetary policy means contraction in the economic activities due to decrease in money…