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Chapter 31 Monetary Policy

Chapter 31 Monetary Policy

Author: Matthew Lonn

Students will examine the role the FED plays in increasing and decreasing the supply of money to impact interest rates.

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Questions you should be able to answer after the lesson.

What is the relationship between interest rates and the demand for money?

What are the 3 tools that the FED uses to shift the supply of money?

What could the FED do to increase the supply of money?

What could the FED do to decrease the supply of money?

Chapter 31 Notes

FED Monetary Tools