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  • Pedro Buzatto ECON Lesson FIve

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    The document contains a student's name, date, school, teacher, and a short response to a question about the most effective monetary tool of the Federal Reserve. The student argues that open market operations, which involve buying and selling government securities to control the money supply, are the most effective because the government has a direct relationship with companies, making it easier to control the money supply and thus the economy.

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    The document contains a student's name, date, school, teacher, and a short response to a question about the most effective monetary tool of the Federal Reserve. The student argues that open market operations, which involve buying and selling government securities to control the money supply, are the most effective because the government has a direct relationship with companies, making it easier to control the money supply and thus the economy.

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    7 views1 page

    Pedro Buzatto ECON Lesson FIve

    Uploaded by

    pedro buzatto
    The document contains a student's name, date, school, teacher, and a short response to a question about the most effective monetary tool of the Federal Reserve. The student argues that open market operations, which involve buying and selling government securities to control the money supply, are the most effective because the government has a direct relationship with companies, making it easier to control the money supply and thus the economy.

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    Name: Pedro Henrique Barreto Buzatto

    Date: 07/03/2019

    School: Centro Educacional Leonardo da Vinci

    Classroom Teacher: Donald Sbrocco

    Which Federal Reserve monetary tool is the most effective? Explain.

    The open market operations are, in my opinion, the most effective monetary tool. It basically

    consists on buying and selling government securities to control the money supply. This

    monetary tool is the most effective one, because here the government has a direct

    relationship with the companies, so it is easier to control the money supply. With a good

    control of the money supply, you have a better control of the economy, so it is also easier to

    decide if it will expand or contract

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