Earlier we learned the important of Fiscal Policy and Fiscal Spending to combat inflation. In this unit, we learn that the Federal Reserve is another important player in the government operation to balance out monetary expansion. Through the use of reserve requirement, discount rate, and open market operations, the Fed have the opportunity to dictate the monetary policy. Through these decisions, policy either leaders towards a tight money supply (a decreased money supply) or a loose money supply (an increased money supply). During the four business cyc
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