Part II: The Federal Reserve notices this slowdown in the economy and decides to take steps to correct it. They can use their 4 tools in the following ways: e. Open Market Operations f Reserve Requirement g. Interest on Reserves h. Discount Rate Part III: Congress and the President also notice this slowdown in the economy and decides to take steps to correct it. They can use their 2 tools in the following ways: C. Taxes d. Government spending

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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I need help with part 2 and 3 if you can
Part II The Federal Reserve notices this slowdown in the economy and decides to take steps to
correct it They can use their 4 tools in the following ways
e Open Market Operations
f Reserve Requirement
g. Interest on Reserves
h. Discount Rate
Part III: Congress and the President also notice this slowdown in the economy and decides to
take steps to correct it. They can use their 2 tools in the following ways:
C. Taxes
d. Government spending
Part IV: The Results
As the money supply (increases/decreases), businesses will get (more/less) money and
eventually unemployment (increases/decreases).
When that happens Jaelyn will see prices (rise/fall) as the economy (expands/contracts).
Transcribed Image Text:Part II The Federal Reserve notices this slowdown in the economy and decides to take steps to correct it They can use their 4 tools in the following ways e Open Market Operations f Reserve Requirement g. Interest on Reserves h. Discount Rate Part III: Congress and the President also notice this slowdown in the economy and decides to take steps to correct it. They can use their 2 tools in the following ways: C. Taxes d. Government spending Part IV: The Results As the money supply (increases/decreases), businesses will get (more/less) money and eventually unemployment (increases/decreases). When that happens Jaelyn will see prices (rise/fall) as the economy (expands/contracts).
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