Define the Following Terms and Explain Their Importance to the Study

question 84

Essay

Define the following terms and explain their importance to the study of macroeconomics.
a.central bank
b.Federal Open Market Committee
c.supply of money
d.monetary policy

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Definitions:

Primary Colors

Red, yellow, and blue—the colors from which all other colors may be derived.

Indifference Curves

Graphical representations in economics to show combinations of two goods among which a consumer is indifferent in preference.

Budget Constraints

The limitations on the consumption choices of individuals or households based on their income and the prices of goods and services.

Optimum

The best or most favorable point, level, or condition, especially in terms of efficiency or success.