Fill and explain in your own words the table. Indicate how the Federal Reserve would use each of the tree monetary policy tools to pursue an expansionary policy and a contractionary policy.
|
Monetary Tool
|
Expansionary Policy
|
Contractionary Policy
|
|
Open Market Operations
|
X
|
X
|
|
Discount Rate
|
X
|
X
|
|
Reserve requirements
|
X
|
X
|