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Interest Rates and Monetary Policy


In this chapter you will learn:
  • How the equilibrium interest rate is determined in the market for money.
  • The goals and tools of monetary policy.
  • About the Federal funds rate and how the Fed controls it.
  • The mechanisms by which monetary policy affects GDP and the price level.
  • The effectiveness of monetary policy and its shortcomings.










McConnell, Macroeconomics 17eOnline Learning Center

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