A number of foreign officials regarding the United States Federal Reserve System. These officials are very interested in doing business in the United States, but they would like to learn more about the Federal Reserve and how it operates.
Write a 750- to 1,050- word paper detailing/addressing the following questions:
- What are the factors that would influence the Federal Reserve in adjusting the discount rate?
- How does the discount rate affect the decisions of banks in setting their specific interest rates?
- How does monetary policy aim to avoid inflation?
- How does monetary policy control the money supply?
- How does a stimulus program (through the money multiplier) affect the money supply?
- Currently, what indictors are evident that there is too much or too little money within the economy? How is monetary policy aiming to adjust this?