... in the circulation. There are four tools the government could use to intercept economy market including taxing, regulating, spending and borrowing. When economy approaches the inflationary window; the best fiscal tool government could use is more taxation. Increasing tax rate would discourage business investment, therefore, less job opportunities in the market and less money flows in the circulation. The total ... to reduce regulation and get government intervention as less as possible. However, when the economy approaches the inflationary window, the government and Federal Reserve shoul...

• Word Count: 1364
• Approx Pages: 5
• Grade Level: Undergraduate

... seven members of the Board of Governors and five members elected by the Federal Reserve banks, is responsible for the determination of Federal Reserve Bank policy in the purchase and sale of securities on the open market. The Federal Advisory Council, whose role is purely advisory, consists of 12 members ... money supply and credit. Occasionally when the discount changes, it can be viewed as a signal of whether the Fed is going to pursue a policy of monetary ease or monetary tightness. Open-market operations are the purchases and sales of government securities by the Federal Reserve Open...

• Word Count: 1833
• Approx Pages: 7
• Grade Level: High School