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  • Lesson Plan:Fiscal Policies Fed toolswhat Fed can do with OMO to solve inflation Fiscal and Monetary efficiencyimpact of tools on loanable funds market Impact of loanable funds on AD/AS
  • What are two fiscal policy and how can they solve inflation?
  • Another fiscal policy is government spending it can increase own spending on goods, services, and infrastructure projects this stimulates economy and increases demand for goods and services
  • One of them is Taxation, the gov can increase taxes to reduce the amount of money people have to spend which helps slow down consmer spendinf and reduce demand
  • Lesson Plan:Fiscal Policies Fed toolswhat Fed can do with OMO to solve inflationFiscal and Monetary efficiencyimpact of tools on loanable funds market Impact of loanable funds on AD/AS
  • Lastly Disount rate; discount rate is interest rate Fed charges bank when funds are borrowed. by increase or decrease fed encourages discourages bank from borrowing which impacts money supple influences economic conditions
  • fed tools:the open market operations. The fed can buy/sell governemt securities which can increase/decrease money supple in the economy which influences interast rates and stimulates or slows down economic activity
  • Reserve requirments , feds set reserve requirment which is percentageod deposits that bank holds as reserves. Adjusting requirments amount of money lent out is controlled impacting money supply
  • Fed can sell governemnt securities in the open market. DOing that they can eeduce the money supple which can help slow down spending and decrease inflationary pressures.
  • What can fed do with OMO to solve inflation
  • Wow thats interesting i never knew that
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