What Are the Three Different Tools That the Fed Can

question 122

Essay

What are the three different tools that the Fed can use to increase the money supply? Briefly explain how they can affect the money supply.

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Definitions:

Mass Media

Various platforms of communication that are capable of reaching a large audience, including television, newspapers, radio, and the internet, often used for disseminating information, entertainment, and advertising.

Face-To-Face Interaction

Direct, in-person communication between individuals, allowing for non-verbal cues and immediate feedback.

Functionalist Theories

Theories that view society as a complex system whose parts work together to promote solidarity and stability, emphasizing the interrelations of social institutions.

Conflict Theories

A perspective in sociology that sees social life as a competition, with individuals and groups struggling over resources, power, and socioeconomic status.