List the Fed's Main Policy Tools and Briefly Explain Each

question 15

Essay

List the Fed's main policy tools and briefly explain each one.

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Definitions:

Square Footage

A measure of area used primarily in the United States, calculated by multiplying the length and width of a space in feet.

Satisfaction

The feeling of pleasure or fulfillment arising from achieving or obtaining what was desired or expected.

Status Quo Bias

Status quo bias is the tendency to prefer things to remain the same or to prefer options that are perceived as the current or default state.

Certainty Effect

The tendency for people to favor options that are certain over those that are probable, even when the probable options may result in a better outcome.