Macro 4.1- Money Market and FED Tools (Monetary Policy)

Macro 4.1- Money Market and FED Tools (Monetary Policy)

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Business

11th Grade - University

Hard

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The video tutorial by Mr. Clifford on ACDC Econ covers the basics of monetary policy, focusing on the money market graph, which illustrates the supply and demand for money. It explains the reasons for money demand, such as transactions and liquidity preference, and the role of the Federal Reserve in supplying money. The tutorial also covers the impact of interest rates on money demand and the tools used by the Fed to adjust the money supply, including the reserve requirement, discount rate, and open market operations. The video emphasizes understanding interest rates as key to grasping monetary policy.

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OPEN ENDED QUESTION

3 mins • 1 pt

What new insight or understanding did you gain from this video?

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