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Chapter 14: Interest Rates and Monetary Policy
Interest Rates- The demand for money
- Equilibrium Interest rates
- Interest rates and bond prices
Tools of Monetary Policy
- Open-market operations
- Reserve ratio
- Discount Rate
- Relative importance
Targeting the Federal Funds
- Expansionary Monetary Policy
- Restrictive Monetary Policyf
Monetary Policy, Real GDP, and the Price Level
- Cause-effect chain
- Effects of expansionary monetary policy
- Effects of a restrictive monetary policy
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