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U.S. monetary policy is set by the Federal Open Market Committee (FOMC). The purpose of...

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Finance

U.S. monetary policy is set by the Federal Open Market Committee (FOMC). The purpose of the policy is to encourage maximum employment, stable prices, and reasonable long-term interest rates.

Questions:

Discuss the tools the Federal Reserve uses to control monetary policies. Include the objective each tool is used to deliver. Expand on how the Federal Reserve System uses the interest rate to affect the money supply.

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