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IPE Midterm Forum- Fall 2008


Re: quick question on the short answers, #3

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Re: quick question on the short answers, #3 Empty Re: quick question on the short answers, #3

Post  rghemigi Sun Nov 16, 2008 3:23 pm

Hi all,

I have a silly question I just needed to confirm for question 3 of the short answers:
Regarding Reserve requirements as an instrument of monetary policy:

If the FED wants to decrease reserve requirements this will increase the money supply by putting more money into circulation.

Is this correct?

Thanks,
Rada

rghemigi

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Re: quick question on the short answers, #3 Empty Answer to Rada's question

Post  Marjorie Sun Nov 16, 2008 4:57 pm

Hey Rada,

Yes, that is right! (as far as I understand it anyway)

Marjorie

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Re: quick question on the short answers, #3 Empty Correct

Post  MariaMariaMariaMariaMaria Mon Nov 17, 2008 12:44 pm

yup! Since thereis less money needed, more money it outputted into the market.

=)

Maria

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Re: quick question on the short answers, #3 Empty Re: Re: quick question on the short answers, #3

Post  rghemigi Mon Nov 17, 2008 9:15 pm

thanks!!

rghemigi

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Re: quick question on the short answers, #3 Empty Re: Re: quick question on the short answers, #3

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