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Macroeconomics Quiz 3 > Monetary Policy > Flashcards

Monetary Policy Flashcards

1
Q

Contractionary monetary policy

A

Decrease bank reserves and the money stock

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2
Q

Equation of exchange

A 
MV=PQ
M=money supply
V=velocity of circulation
P=average price
Q=quantity of goods sold
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3
Q

Expansionary monetary policy

A

Increase bank reserves and the money stock by fed

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Macroeconomics Quiz 3 (3 decks)

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