Effect which changes in the discount rate have by yurtgc548

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									G. Money and Banking and How
   Banks Create Money
   1. The process of monetary
      creation...an application
   2. The application of the monetary
       multiplier
H. The Federal Reserve Banks and
   Monetary Policy
   1. Effect which open market
      operations have on money supply
    2. Effect which changes in reserve
       requirements have on money supply
    3. Effect which changes in the
        discount rate have on money supply
    4. Effect which changes in the money
       supply have on aggregate demand
       and equilibrium GDP
   5. Strengths, shortcomings, and
       problems with monetary policy
       SUMMARY
  IF:
FED BUYS SECURITIES
DROPS RESERVE RATIO
        OR
DROPS DISCOUNT RATE
MONEY SUPPLY UP!!!!!!!!!!!
IF:
 FED SELLS SECURITIES
RAISES RESERVE RATIO
         OR
RAISES DISCOUNT RATE
MONEY SUPPLY DOWN!!!!!!!!!

								
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