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Interest Rates and Monetary Policy


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IN THIS CHAPTER YOU WILL LEARN:

  1. How the equilibrium interest rate is determined in the market for money.


  2. The goals and tools of monetary policy.


  3. About the Federal funds rate and how the Fed controls it.


  4. The mechanisms by which monetary policy affects GDP and the price level.


  5. The effectiveness of monetary policy and its shortcomings.










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