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Module 31 covers how the Federal Reserve influences the economy through monetary policy and interest rates by manipulating the money supply. It discusses the opportunity cost of holding money, the downward sloping Money Demand curve, and the vertical Money Supply curve, leading to equilibrium in the Money Market. The module also explains the mechanisms of expansionary and contractionary monetary policy, the Taylor Rule, and inflation targeting, along with scenario-based assessments to apply these concepts.
- Author
- Sevket Gunduz
- Language
- EN