Economics (McConnell), AP* Edition, 20th EditionChapter 34:
Interest Rates and Monetary Policy After studying this chapter, you should be able to: LO 34.1 | Discuss how the equilibrium interest rate is determined in the market for money. | LO 34.2 | Describe the balance sheet of the Federal Reserve and the meaning of its major items. | LO 34.3 | List and explain the goals and tools of monetary policy. | LO 34.4 | Describe the federal funds rate and how the Fed directly influences it. | LO 34.5 | Identify the mechanisms by which monetary policy affects GDP and the price level. | LO 34.6 | Explain the effectiveness of monetary policy and its shortcomings. |
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