List and Describe the Three Major Monetary Policy Tools the Federal

question 15

Essay

List and describe the three major monetary policy tools the Federal Reserve can use to increase the money supply.Be specific in your response regarding which direction the tool would need to change in order for the money supply to grow.

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Definitions:

Computer Chips

Small semiconductor devices that contain integrated circuits used to perform computing tasks.

Capital

Assets used in the production of goods and services, including physical tools, machinery, buildings, as well as intangible items like software or intellectual property.

Labor

The human effort, whether physical or mental, expended in the production of goods and services.

Production Function

A mathematical model that describes the relationship between inputs used in production and the output of goods or services.