Economy Read the following premise carefully and answer the questions specifically and in detail. "Faced with instability in economic growth due to a recession or accelerated inflation, the Fed uses the open market operation to increase or decrease the available reserves of commercial banks which, in turn, will affect the amount of money available in the economy. economy In addition to open market operation, the Fed has other tools available to promote the growth, sustainment and economic stability of a country. These tools have been used historically; "A good example was the mortgage debt crisis of 2008." A. Express in detail the effects of monetary policy, expansionary and contractionary, on income and the price level. B. Using the premise presented as a basis, argue about the intervention of monetary policy as instruments to promote growth, sustainability and economic stability of a country. (Gives an example in detail.)

ENGR.ECONOMIC ANALYSIS
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Economy
Read the following premise carefully and answer the questions specifically and in detail.

"Faced with instability in economic growth due to a recession or accelerated inflation, the Fed uses the open market operation to increase or decrease the available reserves of commercial banks which, in turn, will affect the amount of money available in the economy. economy In addition to open market operation, the Fed has other tools available to promote the growth, sustainment and economic stability of a country.
These tools have been used historically; "A good example was the mortgage debt crisis of 2008."

A. Express in detail the effects of monetary policy, expansionary and contractionary, on income and the price level.

B. Using the premise presented as a basis, argue about the intervention of monetary policy as instruments to promote growth, sustainability and economic stability of a country. (Gives an example in detail.)

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