Money, Banking, and Financial Markets : Econ. 212 - PowerPoint PPT Presentation

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The Federal Reserve's Monetary Policy ToolboxThe central bank can control the quantity of reserves that commercial banks hold.Besides the quantity of reserves, the central bank can control either the size of the monetary base or the price of its components.The two prices it concentrates on are

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Money, Banking, and Financial Markets : Econ. 212

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