Respuesta :
When the federal reserve engages in quantitative easing, expansionary monetary policy is used, with the desired effects being that real gdp rises and unemployment falls.
What is federal reserve?
The United States of America's central banking system is called the Federal Reserve System. The Federal Reserve Act, which was passed on December 23, 1913, the day before Christmas Eve, gave rise to it.
What does the Federal Reserve do?
The Federal Reserve, sometimes known as the Fed, is the most potent economic institution in the world, if not the entire country of the United States. Setting interest rates, controlling the money supply, and overseeing the financial system are some of its main functions.
What is monetary policy ?
The monetary authority of a country adopts monetary policy to regulate the money supply or the interest rate due for very short-term borrowing, frequently in an effort to minimize inflation.
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