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.

See More
Try a College Course Free

Sophia’s self-paced online courses are a great way to save time and money as you earn credits eligible for transfer to over 2,000 colleges and universities.*

Begin Free Trial
No credit card required

28 Sophia partners guarantee credit transfer.

263 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 25 of Sophia’s online courses. More than 2,000 colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.


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