Chapter 14: Interest Rates and Monetary PolicyThis is a featured page

Helicopter Ben 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 Policy

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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