Explain the Difference Between Active Monetary Policy and Passive Monetary

question 119

Essay

Explain the difference between active monetary policy and passive monetary policy,commenting on the Federal Reserve's use of monetary policy since the early 1980s.

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Definitions:

Unsold Goods

Items that have been produced or acquired for sale but have not been purchased by consumers, often leading to excess inventory for businesses.

Republicanism

A political ideology centered on citizenship in a state organized as a republic, emphasizing liberty, and the rule of law as opposed to hereditary monarchy.

Virtue

is a trait or quality deemed to be morally good and thus is valued as a foundation of good moral being. Personal virtues include traits such as integrity, courage, fortitude, honesty, and loyalty.

Political Process

The methods and actions taken to formulate and implement public policies or to elect individuals to government positions, involving participation by citizens, politicians, and institutions.