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  • Unit 4 Macroeconomics Lesson 1 Activity 35 Answer Key

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4 Macroeconomics UNIT LESSON 1 I ACTIVITY 35 Whats All This About the Ms? While monetary policy is the subject of debates that capture the publics attention, the first steps in the formulation of.

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Why is it important for the Fed to know the size and the rate of growth of the money supply ? The size of the money supply and the rate at which it is growing can have a significant impact on the economic well being of the country .

The Federal Reserve doesn't have control over the amount of money banks can lend out to organizations or individuals, which has an effect on the money supply in the economy. The other reason is that the Feds cannot control money held as deposits in the bank by a household, which affects the money supply in the economy.

Accurately measuring the money supply can be difficult, as money exists in physical and electronic forms.

Because of technological innovation in the financial services industry, and profit maximizing behavior on the part of commercial banks, the FED must find new ways for tracking the money supply to assist with monetary policy.

However, the Fed cannot precisely know the precise amount of money in supply due to the lack of knowledge on how much money bankers are willing to loan. The central bank can only set the maximum amount which banks can retain. The Fed uses open market operations to control the supply of money in an economy.

To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.

The cash residences decide to keep as savings at banks, and keeping cash may again not be regulated by the fed. It can lead to misinformation to fed. If the household does hold cash in their banks or their homesteads, the Fed will not regulate and control those households on how to spent and when to.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232