Monetary Policy Tools 1 Monetary Policy Changes in Monetary Policy Tools in order to affect Aggregate Expenditures Increase AE Decrease AE 2.
The Federal Reserve Act of 1913 created the Federal Reserve System –To provide for the establishment of Federal reserve banks, to furnish an elastic currency,
Outline Organization of the Federal Reserve system Routine functions of the FED The instruments of monetary policy How banks create money The process.
Chapter 14 Determinants of the Money Supply. Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 14-2 The Money Supply Model Define money as.
Final Exam n Exam Date: May 6, 2006 n Exam Time: 2:00-4:00pm n Room: Terrill Hall 121.
