List three main tools available to the federal to change the money supply in the economy?

September 16, 2009 by admin · 2 Comments
Filed under: Economics 
tools
Cool guy asked:


List three main tools available to the fed to change the money supply in the economy.

Which tool do you think is most commonly used?

If the fed wanted to increase the supply of money in the economy, would the fed buy or sell securities in the open market and what would be the first effect of this policy.