Can you name the effects of these changes?

created by Scayleb
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The Fed buys bonds
The money supply _________. 
The Fed gives banks ________. 
The banks give the Fed ________. 
This is an example of __________ policy. 
Which is used to fight ____________. 
The Fed raises the discount rate
The money supply _______. 
The Fed ________ the interest banks pay 
To ______ 
So now banks are ____ likely to borrow money 
This is an example of __________ policy. 
Which is used to fight ___________. 
The Fed raises the reserve requirement
The money supply _____. 
Banks ______ loan out as much money. 
Because MM=1/RR, as the reserve requirement increases, the money multiplier ________. 
This is an example of _________ policy. 
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